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Entergy Reports Third Quarter Earnings

  • Nov 3, 2021
  • 206 views
Source: 
PR Newswire

NEW ORLEANS, Nov. 3, 2021 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2021 earnings per share of $2.63 on an as-reported basis and earnings per share of $2.45 on an adjusted basis (non-GAAP).

"We delivered another strong quarter. With clear visibility into the remainder of the year and a strong base plan, we are narrowing our 2021 adjusted earnings per share guidance range and affirming our longer-term outlooks." said Entergy Chairman and Chief Executive Officer Leo Denault. "Looking forward, we are working to accelerate resilience, expand renewables, and help our customers meet their sustainability objectives.  These efforts and related load growth opportunities will extend and expand our customer-centered capital investment through the end of the decade and beyond."

Business highlights included the following:

  • Entergy narrowed its 2021 adjusted EPS guidance range to $5.90 to $6.10.
  • The Arkansas Public Service Commission approved the West Memphis Solar project.
  • Entergy Texas filed its application for approval of Orange County Advanced Power Station.
  • Entergy Arkansas reached settlements on its annual FRP and Green Promise Tariff filings.
  • Entergy New Orleans implemented new FRP rates.
  • Entergy Texas filed a settlement on its 2020 storm cost filing.
  • Entergy Texas submitted distribution and transmission cost recovery filings.
  • Entergy's Board of Directors declared a quarterly dividend of $1.01 per share, a six percent increase.
  • Entergy was named as one of the nation's top utilities in economic development by Site Selection magazine for the 14th consecutive year.
  • The Center for Climate and Energy Solutions and the Climate Registry awarded Entergy with a 2021 Climate Leadership Award for Organizational Leadership, recognizing Entergy for its leadership in reducing carbon emissions and its 2030 and 2050 climate commitments.

 

Consolidated Earnings (GAAP and Non-GAAP Measures)

Third Quarter and Year-to-Date 2021 vs. 2020 (See Appendix A for reconciliation of GAAP to non-GAAP measures

and description of adjustments)


 

Third Quarter

Year-to-Date


 

2021

2020

Change

2021

2020

Change

(After-tax, $ in millions)


 

 

 

 

 

 

As-reported earnings

531

521

11

860

1,000

(141)

Less adjustments

37

30

7

(201)

4

(205)

Adjusted earnings (non-GAAP)

494

491

4

1,061

996

64

  Estimated weather in billed sales

(2)

1

(3)

4

(53)

57


 

 

 

 

 

 

 

(After-tax, per share in $)


 

 

 

 

 

 

As-reported earnings

2.63

2.59

0.04

4.26

4.98

(0.72)

Less adjustments

0.18

0.15

0.03

(1.00)

0.02

(1.02)

Adjusted earnings (non-GAAP)

2.45

2.44

0.01

5.26

4.96

0.30

  Estimated weather in billed sales

(0.01)

0.01

(0.02)

0.02

(0.26)

0.28


 

 

 

 

 

 

 

Calculations may differ due to rounding

Consolidated Results

For third quarter 2021, the company reported earnings of $531 million, or $2.63 per share, on an as-reported basis, and earnings of $494 million, or $2.45 per share, on an adjusted basis. This compared to third quarter 2020 earnings of $521 million, or $2.59 per share, on an as-reported basis, and earnings of $491 million, or $2.44 per share, on an adjusted basis.

Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly and year-to-date variances by business is provided in Appendix B.

Business Segment Results

Utility

For third quarter 2021, the Utility business reported earnings attributable to Entergy Corporation of $570 million, or $2.82 per share, on an as-reported basis and $559 million, or $2.77 per share, on an adjusted basis. This compared to third quarter 2020 earnings of $552 million, or $2.74 per share, on both an as-reported and an adjusted basis. Drivers for the change in quarterly earnings included:

  • the net effect of regulatory actions across the operating companies.

The driver was partially offset by:

  • higher operating expenses including other O&M, taxes other than income taxes, and  depreciation expense; and
  • retail sales volume, including volume in the unbilled period, largely due to impacts of Hurricane Ida.

Appendix C contains additional details on Utility financial and operating measures.

Parent & Other

For third quarter 2021, Parent & Other reported a loss attributable to Entergy Corporation of $(65 million), or (32) cents per share, on both an as-reported and an adjusted basis. This compared to a third quarter 2020 loss of $(61 million), or (30) cents per share, on both an as-reported and an adjusted basis.

Entergy Wholesale Commodities 

For third quarter 2021, EWC reported earnings attributable to Entergy Corporation of $26 million, or 13 cents per share, on an as-reported basis. This compared to third quarter 2020 earnings of $30 million, or 15 cents per share, on an as-reported basis. Drivers for the quarter included:

  • lower operating expenses, including other O&M primarily due to the shutdown of Indian Point 3 and decommissioning expense primarily due to the sale of Indian Point.

The driver was partially offset by:

  • lower revenue primarily due to the shutdown of Indian Point 3; and
  • lower earnings on the decommissioning trusts due to the transfer of the trusts resulting from the sale of Indian Point.

Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.

Earnings Per Share Guidance

Entergy narrowed its 2021 adjusted EPS guidance to a range of $5.90 to $6.10. See webcast presentation for additional details.

The company has provided 2021 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP Financial Measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(0.80) in 2021. This estimate is subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, November 3, 2021, 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 8029888, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy's website concurrent with this news release. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through November 10, 2021, by dialing 855-859-2056, conference ID 8029888.

Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 7,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and approximately 12,500 employees.

Entergy Corporation's common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol "ETR".

Details regarding Entergy's results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.

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 ROE, excluding affiliate preferred; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO 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 and FFO 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) exclude the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements

In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2021 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 or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.

Third Quarter 2021 Earnings Release Appendices and Financial Statements

Appendices

A: Consolidated Results and Adjustments

B: Earnings Variance Analysis

C: Utility Financial and Operating Measures

D: EWC Financial and Operating Measures

E: Consolidated Financial Measures

F: Definitions and Abbreviations and Acronyms

G: Other GAAP to Non-GAAP Reconciliations

Financial Statements

Consolidating Balance Sheets

Consolidating Income Statements

Consolidated Cash Flow Statements

A: Consolidated Results and Adjustments

Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Third Quarter and Year-to-Date 2021 vs. 2020 (See Appendix A-3 and Appendix A-4 for details on adjustments)


 

Third Quarter

Year-to-Date


 

2021

2020

Change

2021

2020

Change

(After-tax, $ in millions)


 

 

 

 

 

 

As-reported earnings (loss)


 

 

 

 

 

 

Utility

570

552

19

1,253

1,216

37

Parent & Other

(65)

(61)

(4)

(181)

(220)

39

EWC

26

30

(4)

(212)

4

(216)

Consolidated

531

521

11

860

1,000

(141)


 

 

 

 

 

 

 

Less adjustments


 

 

 

 

 

 

Utility

11

-

11

11

-

11

Parent & Other

-

-

-

-

-

-

EWC

26

30

(4)

(212)

4

(216)

Consolidated

37

30

7

(201)

4

(205)


 

 

 

 

 

 

 

Adjusted earnings (loss) (non-GAAP)


 

 

 

 

 

 

Utility

559

552

8

1,242

1,216

26

Parent & Other

(65)

(61)

(4)

(181)

(220)

39

EWC

-

-

-

-

-

-

Consolidated

494

491

4

1,061

996

64

Estimated weather in billed sales

(2)

1

(3)

4

(53)

57


 

 

 

 

 

 

 

Diluted average number of common shares outstanding (in millions)

202

201


 

202

201


 

 

 

 

 

 

 

 

(After-tax, per share in $) (a)


 

 

 

 

 

 

As-reported earnings (loss)


 

 

 

 

 

 

Utility

2.82

2.74

0.08

6.21

6.05

0.16

Parent & Other

(0.32)

(0.30)

(0.02)

(0.90)

(1.09)

0.19

EWC

0.13

0.15

(0.02)

(1.05)

0.02

(1.07)

Consolidated

2.63

2.59

0.04

4.26

4.98

(0.72)


 

 

 

 

 

 

 

Less adjustments


 

 

 

 

 

 

Utility

0.05

-

0.05

0.05

-

0.05

Parent & Other

-

-

-

-

-

-

EWC

0.13

0.15

(0.02)

(1.05)

0.02

(1.07)

Consolidated

0.18

0.15

0.03

(1.00)

0.02

(1.02)


 

 

 

 

 

 

 

Adjusted earnings (loss) (non-GAAP)


 

 

 

 

 

 

Utility

2.77

2.74

0.03

6.16

6.05

0.11

Parent & Other

(0.32)

(0.30)

(0.02)

(0.90)

(1.09)

0.19

EWC

-

-

-

-

-

-

Consolidated

2.45

2.44

0.01

5.26

4.96

0.30

Estimated weather in billed sales

(0.01)

0.01

(0.02)

0.02

(0.26)

0.28


 

Calculations may differ due to rounding

(a)   Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

 

See Appendix B for detailed earnings variance analysis.

Appendix A-2 provides a comparative summary of OCF, by business.

Appendix A-2: Consolidated Operating Cash Flow

Third Quarter and Year-to-Date 2021 vs. 2020

($ in millions)


 

Third Quarter

Year-to-Date


 

2021

2020

Change

2021

2020

Change

Utility

1,289

976

313

2,226

2,371

(145)

Parent & Other

(68)

(67)

(1)

(154)

(211)

58

EWC

43

13

31

(62)

211

(272)

Consolidated

1,264

922

343

2,011

2,370

(359)


 

Calculations may differ due to rounding

 

OCF increased quarter-over-quarter due primarily to higher collections from Utility customers, net of the timing of fuel and purchased power payments and cost recovery.

Appendix A-3 and Appendix A-4 list adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) 

Third Quarter and Year-to-Date 2021 vs. 2020


 

Third Quarter

Year-to-Date


 

2021

2020

Change

2021

2020

Change


 

 

 

 

 

 

 

(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)

Utility


 

 

 

 

 

 

Gain on sale

15

-

15

15

-

15

Income tax effect on adjustment above

(4)

-

(4)

(4)

-

(4)

Total Utility

11

-

11

11

-

11


 

 

 

 

 

 

 

EWC


 

 

 

 

 

 

Income before income taxes

35

43

(8)

(258)

12

(270)

Income taxes

(9)

(12)

3

47

(6)

54

Preferred dividend requirements

(1)

(1)

-

(2)

(2)

-

Total EWC

26

30

(4)

(212)

4

(216)


 

 

 

 

 

 

 

Total adjustments

37

30

7

(201)

4

(205)


 

 

 

 

 

 

 

(After-tax, per share in $) (b)


 

 

 

 

 

 

Utility


 

 

 

 

 

 

Gain on sale

0.05

-

0.05

0.05

-

0.05

Total Utility

0.05

-

0.05

0.05

-

0.05


 

 

 

 

 

 

 

EWC


 

 

 

 

 

 

Total EWC

0.13

0.15

(0.02)

(1.05)

0.02

(1.07)


 

 

 

 

 

 

 

Total adjustments

0.18

0.15

0.03

(1.00)

0.02

(1.02)


 

Calculations may differ due to rounding

(b)   Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

 

Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) 

Third Quarter and Year-to-Date 2021 vs. 2020

(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)


 

Third Quarter

Year-to-Date


 

2021

2020

Change

2021

2020

Change

Utility


 

 

 

 

 

 

Other O&M

15

-

15

15

-

15

Income taxes

(4)

-

(4)

(4)

-

(4)

Total Utility

11

-

11

11

-

11


 

 

 

 

 

 

 

EWC


 

 

 

 

 

 

Operating revenues

162

214

(52)

559

747

(187)

Fuel and fuel-related expenses

(24)

(14)

(10)

(63)

(51)

(12)

Purchased power

(22)

(29)

7

(58)

(49)

(9)

Nuclear refueling outage expense

(11)

(11)

(1)

(34)

(35)

1

Other O&M

(51)

(114)

63

(233)

(385)

152

Asset write-off and impairments

-

(4)

5

(345)

(16)

(329)

Decommissioning expense

(14)

(51)

37

(106)

(152)

46

Taxes other than income taxes

(2)

(10)

8

(15)

(44)

30

Depreciation/amortization exp.

(9)

(21)

12

(36)

(81)

45

Other income (deductions)–other

9

87

(78)

84

97

(13)

Interest exp. and other charges

(3)

(5)

2

(11)

(17)

6

Income taxes

(9)

(12)

3

47

(6)

54

Preferred dividend requirements

(1)

(1)

-

(2)

(2)

-

Total EWC

26

30

(4)

(212)

4

(216)


 

 

 

 

 

 

 

Total adjustments

37

30

7

(201)

4

(205)


 

Calculations may differ due to rounding

 

B: Earnings Variance Analysis 

Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2021 versus 2020 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.

Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d)

Third Quarter 2021 vs. 2020

(After-tax, per share in $)


 

Utility


 

Parent & Other


 

EWC


 

Consolidated


 

As-

Reported

Adjusted


 

As-

Reported

Adjusted


 

As-

Reported


 

As-

Reported

Adjusted

2020 earnings (loss)

2.74

2.74


 

(0.30)

(0.30)


 

0.15


 

2.59

2.44

Operating revenue less:

  Fuel, fuel-related expenses and

  gas purchased for resale,

  Purchased power, and

  Regulatory charges (credits)–net

0.17

0.17

(e)

0.00

0.00


 

(0.22)

(f)

(0.05)

0.17

Nuclear refueling outage expense

0.01

0.01


 

0.00

0.00


 

0.00


 

0.01

0.01

Other O&M

(0.04)

(0.09)

(g)

0.00

0.00


 

0.24

(h)

0.20

(0.09)

Asset write-offs and impairments

0.00

0.00


 

0.00

0.00


 

0.02


 

0.02

0.00

Decommissioning expense

(0.01)

(0.01)


 

0.00

0.00


 

0.15

(i)

0.14

(0.01)

Taxes other than income taxes

(0.07)

(0.07)

(j)

0.00

0.00


 

0.03


 

(0.04)

(0.07)

Depreciation/amortization exp.

(0.12)

(0.12)

(k)

0.00

0.00


 

0.05

(l)

(0.07)

(0.12)

Other income (deductions)–other

0.22

0.22

(m)

0.00

0.00


 

(0.31)

(n)

(0.09)

0.22

Interest exp. and other charges

(0.03)

(0.03)


 

(0.03)

(0.03)


 

0.01


 

(0.05)

(0.06)

Income taxes–other

(0.04)

(0.04)


 

0.01

0.01


 

0.01


 

(0.02)

(0.03)

Preferred dividend requirements

0.00

0.00


 

0.00

0.00


 

0.00


 

0.00

0.00

Share effect

(0.01)

(0.01)


 

0.00

0.00


 

0.00


 

(0.01)

(0.01)

2021 earnings (loss)

2.82

2.77


 

(0.32)

(0.32)


 

0.13


 

2.63

2.45


 

 

 

 

 

 

 

 

 

 

 

 

Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)

Year-to-date 2021 vs. 2020

(After-tax, per share in $)


 

Utility


 

Parent & Other


 

EWC


 

Consolidated


 

As-

Reported

Adjusted


 

As-

Reported

Adjusted


 

As-

Reported


 

As-

Reported

Adjusted

2020 earnings (loss)

6.05

6.05


 

(1.09)

(1.09)


 

0.02


 

4.98

4.96

Operating revenue less:

  Fuel, fuel-related expenses and

  gas purchased for resale,

  Purchased power, and

  Regulatory charges (credits)–net

1.60

1.60

(e)

0.00

0.00


 

(0.82)

(f)

0.78

1.60

Nuclear refueling outage expense

0.03

0.03


 

0.00

0.00


 

0.00


 

0.03

0.03

Other O&M

(0.56)

(0.61)

(g)

0.00

0.00


 

0.60

(h)

0.04

(0.61)

Asset write-offs and impairments

0.00

0.00


 

0.00

0.00


 

(1.29)

(o)

(1.29)

0.00

Decommissioning expense

(0.03)

(0.03)


 

0.00

0.00


 

0.18

(i)

0.15

(0.03)

Taxes other than income taxes

(0.09)

(0.09)

(j)

0.00

0.00


 

0.12

(p)

0.03

(0.09)

Depreciation/amortization exp.

(0.36)

(0.36)

(k)

0.00

0.00


 

0.18

(l)

(0.18)

(0.36)

Other income (deductions)–other

0.17

0.17

(m)

0.04

0.04


 

(0.05)

(n)

0.16

0.21

Interest exp. and other charges

(0.12)

(0.12)

(q)

(0.02)

(0.02)


 

0.02


 

(0.12)

(0.14)

Income taxes–other

(0.46)

(0.46)

(r)

0.17

0.17

(s)

(0.01)


 

(0.30)

(0.29)

Preferred dividend requirements

0.00

0.00


 

0.00

0.00


 

0.00


 

0.00

0.00

Share effect

(0.02)

(0.02)


 

0.00

0.00


 

0.00


 

(0.02)

(0.02)

2021 earnings (loss)

6.21

6.16


 

(0.90)

(0.90)


 

(1.05)


 

4.26

5.26


 

Calculations may differ due to rounding

 

(c)

Utility operating revenue / regulatory charges (credits)–net and Utility income taxes–other exclude $17 million in third quarter 2021 and $16 million in third quarter 2020 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue / regulatory charges (credits)–net and Utility income taxes–other exclude $72 million in 2021 and $61 million in 2020 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings).

(d)

EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items.

(e)

The third quarter and year-to-date earnings increases were driven by regulatory actions including E-LA's FRP; E-TX's GCRR, TCRF, and DCRF; E-NO's NOPS recovery; and E-MS's FRP. The variances also reflected a few other items: regulatory charges (credits)–net for the difference between decommissioning expenses and decommissioning trust earnings plus decommissioning costs collected in revenue (largely earnings neutral, offset in Utility other income (deductions)–other; a reserve adjustment for the FERC MSS-4 ROE decision; and higher Grand Gulf revenue. For the quarter, retail sales volume including volume in the unbilled period partially offset the increase.  Volume for the year-to-date period contributed to the increase. The year-to-date variance also reflected recovery of LCPS, the reversal of a regulatory provision for E-AR's 2019 netting adjustment, a regulatory credit for E-MS (primarily for its 2020 lookback evaluation), and a first quarter 2020 regulatory liability for tax sharing with E-LA customers (partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote r).

(f)

The third quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Indian Point 3 in April 2021. The year-to-date decrease also reflected the shutdown of Indian Point 2 in April 2020.

(g)

The third quarter and year-to-date earnings decreases from higher Utility other O&M reflected higher distribution operations expenses primarily due to contractor and reliability costs; higher non-nuclear generation expenses due partly to materials and supplies, contractor spending, and expenses associated with new plants placed in service; and higher benefits costs. These items were partially offset by a $15 million pre-tax gain on the sale of an asset (considered an adjustment and excluded from adjusted earnings). The year-to-date decrease also reflected higher scope of work performed during non-nuclear plant outages, higher nuclear generation expenses, lower nuclear insurance refunds, higher MISO expenses, and higher contract costs related to new customer initiatives.

(h)

The third quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Indian Point 3 in April 2021 and lower severance and retention costs. The year-to-date increase also reflected the shutdown of Indian Point 2 in April 2020

(i)

The third quarter and year-to-date earnings increases from lower EWC decommissioning expense were due to the sale of Indian Point in May 2021

(j)

The third quarter and year-to-date earnings decreases from higher Utility taxes other than income taxes were due to higher franchise taxes and higher ad valorem taxes.

(k)

The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including MCPS. The year-to-date decrease also reflected LCPS. 

(l)

The third quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Indian Point 3 in April 2021. The year-to-date variance also reflected the Indian Point 2 shutdown in April 2020.

(m)

The third quarter and year-to-date earnings increases from higher Utility other income (deductions)–other were due largely to differences in decommissioning trust fund returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). The year-to-date increase was partially offset by lower AFUDC as a result of higher construction work in progress in 2020. 

(n)

The third quarter and year-to-date earnings decrease from lower EWC other income (deductions)–other were due largely to lower gains on decommissioning trust fund investments, including the absence of earnings from nuclear decommissioning trust funds that were transferred in the sale of Indian Point.  In the year-to-date period, the decrease was partially offset by lower non-service pension costs. 

(o)

The year-to-date earnings decrease from higher EWC asset write-offs and impairments was due primarily to a $340 million ($268 million net-of-tax) loss which resulted from the sale of Indian Point in May 2021.

(p)

The year-to-date earnings increase from lower EWC taxes other than income taxes was due primarily to the shutdown of Indian Point 2 in April 2020 and Indian Point 3 in April 2021

(q)

The year-to-date earnings decrease from higher Utility interest expense was due primarily to higher debt balances at E-LA and E-MS, as well as lower AFUDC as a result of higher construction work in progress in 2020.

(r)

The year-to-date earnings decrease from Utility income taxes–other primarily relates to two first quarter 2020 items. First, a $55 million tax benefit was recorded in first quarter 2020 as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, discussed in footnote e); and second, an annual tax accrual related to stock-based compensation resulted in a $22 million income tax benefit in first quarter 2020. 

(s)

The year-to-date earnings increase from Parent & Other income taxes–other reflected a reversal of a $9 million valuation allowance related to the interest expense limitation in second quarter 2021. The year-to-date increase also reflected $23 million of income tax expense recorded in first quarter 2020 as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote r).

 

Utility as-reported Operating revenue less Fuel, fuel-related

expenses and gas purchased for resale; Purchased power; and

Regulatory charges (credits) variance analysis

2021 vs. 2020 ($ EPS)


 

3Q

YTD

Volume/weather

(0.09)

0.31

Retail electric price

0.38

0.86

MSS-4 ROE reserve adjustment

0.02

0.07

Reg. provision for decommissioning

(0.25)

(0.32)

Lower capacity cost not offset in fuel recovery

0.07

0.15

Reg. provision for E-AR FRP (2019 netting adj.)

-

0.16

Reg. liability for tax sharing

-

0.10

Reg. credit for E-MS

-

0.07

Other, including Grand Gulf recovery

0.04

0.20

Total

0.17

1.60

 

C: Utility Financial and Operating Measures 

Appendix C provides comparative summaries of Utility operating and financial measures.


 

Appendix C: Utility Operating and Financial Measures


 

Third Quarter and Year-to-Date 2021 vs. 2020


 

 

Third Quarter

Year-to-Date


 

 

2021

2020

%

Change

% Weather

Adjusted (t)

2021

2020

%

Change

% Weather

Adjusted (t)


 

GWh billed


 

 

 

 

 

 

 

 

 

Residential

11,218

11,634

(3.6)

(2.9)

28,178

27,519

2.4

(1.3)


 

Commercial

7,795

7,791

0.1

0.5

20,299

20,106

1.0

0.8


 

Governmental

660

660

0.0

0.5

1,841

1,826

0.8

1.7


 

Industrial

13,187

11,994

9.9

9.9

37,335

35,655

4.7

4.7


 

Total retail sales

32,860

32,079

2.4

2.8

87,653

85,106

3.0

1.7


 

Wholesale

4,350

4,881

(10.9)


 

13,365

11,109

20.3


 

 

Total sales

37,210

36,960

0.7


 

101,018

96,215

5.0


 

 

 

 

 

 

 

 

 

 

 

 

Number of electric retail customers


 

 

 

 

 

 

 

 

 

Residential


 

 

 

 

2,548,865

2,530,150

0.7


 

 

Commercial


 

 

 

 

365,364

361,401

1.1


 

 

Governmental


 

 

 

 

17,922

17,653

1.5


 

 

Industrial


 

 

 

 

50,579

48,651

4.0


 

 

Total retail customers


 

 

 

 

2,982,730

2,957,855

0.8


 

 

 

 

 

 

 

 

 

 

 

 

Other O&M and refueling outage expense per MWh

$18.17

$18.02

0.8


 

$20.14

$19.66

2.4


 

 

 

 

 

 

 

 

 

 

 

Calculations may differ due to rounding

(t)   The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

 

On a weather-adjusted basis, billed retail sales increased 2.8 percent. Third quarter 2021 sales were impacted by Hurricane Ida while third quarter 2020 sales were affected by Hurricane Laura; the estimated net impact for the quarter was approximately (1.0) percent. The impact that the COVID-19 pandemic had on the prior year also contributed to the variance. Industrial billed sales were 9.9 percent higher than third quarter 2020. The increase in industrial usage was primarily due to an increase in demand from expansion projects, primarily in the transportation, metals, and chemicals industries, an increase in demand from existing customers, primarily in the gases and chemicals industries as a result of temporary plant shutdowns and operational issues, and an increase in demand from mid-to-small and cogeneration customers. Residential billed sales decreased (2.9) percent and commercial billed sales increased 0.5 percent.

D: EWC Financial and Operating Measures 

Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures

Third Quarter and Year-to-Date 2021 vs. 2020

($ in millions)

Third Quarter

Year-to-Date


 

2021

2020

Change

2021

2020

Change

Net income (loss)

26

31

(5)

(210)

6

(216)

Add back: interest expense

3

5

(2)

11

17

(6)

Add back: income taxes

9

12

(3)

(47)

6

(54)

Add back: depreciation and amortization

9

21

(12)

36

81

(45)

Subtract: interest and investment income

3

95

(92)

100

130

(30)

Add back: decommissioning expense

14

51

(37)

106

152

(46)

Adjusted EBITDA (non-GAAP)

57

24

33

(205)

132

(337)


 

Calculations may differ due to rounding

 

Appendix D-2 provides a comparative summary of EWC operating and financial measures.

Appendix D-2: EWC Operating and Financial Measures

Third Quarter and Year-to-Date 2021 vs. 2020


 

Third Quarter

Year-to-Date


 

2021

2020

% Change

2021

2020

% Change

Owned capacity (MW) (u)

1,205

2,246

(46.3)

1,205

2,246

(46.3)

GWh billed

2,166

4,332

(50.0)

9,265

16,047

(42.3)


 

 

 

 

 

 

 

EWC Nuclear Fleet


 

 

 

 

 

 

Capacity factor

97%

83%

16.9

97%

94%

3.2

GWh billed

1,702

3,943

(56.8)

8,046

14,782

(45.6)

Production cost per MWh

$28.91

$21.85

32.3

$23.32

$18.24

27.9

Average energy/capacity revenue per MWh

$69.35

$49.71

39.5

$54.79

$45.23

21.1

Refueling outage days


 

 

 

 

 

 

  Palisades

-

32


 

-

32


 

 

Calculations may differ due to rounding

(u)   2021 is lower due to the shutdown of IP3 (1,041MW) on April 30, 2021.

 

See the appendix in the webcast presentation for EWC hedging and price disclosures.

E: Consolidated Financial Measures

Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.

Appendix E: GAAP and Non-GAAP Financial Measures

Third Quarter 2021 vs. 2020 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)


 

 

For 12 months ending September 30

2021

2020

Change

GAAP Measures


 

 

 

As-reported ROIC

5.3%

6.3%

(1.0)%

As-reported ROE

11.3%

13.3%

(2.0)%


 

 

 

 

Non-GAAP Financial Measures


 

 

 

Adjusted ROIC

5.2%

5.4%

(0.2)%

Adjusted ROE

10.9%

10.9%

0.0%


 

 

 

 

As of September 30 ($ in millions, except where noted)

2021

2020

Change

GAAP Measures


 

 

 

Cash and cash equivalents

1,000

1,240

(240)

Available revolver capacity 

3,925

4,125

(199)

Commercial paper

1,006

1,398

(392)

Total debt

25,695

22,127

3,568

Securitization debt

90

209

(120)

Debt to capital

69.1%

66.7%

2.3%

Off-balance sheet liabilities:


 

 

 

  Debt of joint ventures – Entergy's share

9

49

(39)

Total off-balance sheet liabilities

9

49

(39)


 

 

 

 

Storm escrow balances

33

373

(340)


 

 

 

 

Non-GAAP Financial Measures ($ in millions, except where noted)


 

 

 

Debt to capital, excluding securitization debt

69.0%

66.5%

2.5%

Net debt to net capital, excluding securitization debt

68.1%

65.2%

2.9%

Gross liquidity

4,925

5,364

(439)

Net liquidity

3,919

3,966

(47)

Net liquidity, including storm escrow balances

3,952

4,339

(387)

Parent debt to total debt, excluding securitization debt

23.4%

22.4%

1.0%

FFO to debt, excluding securitization debt

8.3%

11.8%

(3.5)%

FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC

9.2%

12.5%

(3.3)%


 

Calculations may differ due to rounding

 

F: Definitions and Abbreviations and Acronyms

Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix F-1: Definitions 

Utility Financial and Operating Measures

GWh billed

Total number of GWh billed to retail and wholesale customers

Number of electric retail customers

Average number of electric customers over the period

Other O&M and refueling outage expense per MWh

Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales


 

 

EWC Financial and Operating Measures

Adjusted EBITDA (non-GAAP)

Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense

Average revenue per MWh on contracted volumes

Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades (revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs)

Average revenue under contract per kW-month (applies to capacity contracts only)

Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards

Bundled capacity and energy contracts

A contract for the sale of installed capacity and related energy, priced per MWh sold

Capacity factor

Normalized percentage of the period that the nuclear plants generate power

Expected sold and market total revenue per MWh

Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA

GWh billed

Total number of GWh billed to customers and financially-settled instruments

Owned capacity (MW)

Installed capacity owned by EWC

Percent of capacity sold forward

Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions

Percent of planned generation under contract (unit contingent)

Percent of planned generation output sold under unit-contingent contracts

Planned net MW in operation (average)

Average installed nuclear capacity to generate power and/or sell capacity, reflecting the shutdown of Palisades (May 31, 2022)

Planned TWh of generation

Amount of output expected to be generated by EWC nuclear resources considering plant operating characteristics, reflecting the shutdown of 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)


 

 

Appendix F-1: Definitions (continued)

EWC Financial and Operating Measures (continued)

Unit contingent

Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee


 

 

Financial Measures – GAAP

As-reported ROE

12-months rolling net income attributable to Entergy Corporation divided by avg. common equity

As-reported ROIC

12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

Debt of joint ventures – Entergy's share

Entergy's share of debt issued by business joint ventures at EWC

Debt to capital

Total debt divided by total capitalization

Available revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Securitization debt

Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections

Total debt

Sum of short-term and long-term debt, notes payable and commercial paper, and finance leases on the balance sheet

Financial Measures – Non-GAAP

Adjusted EPS

As-reported EPS excluding adjustments

Adjusted ROE

12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity

Adjusted ROIC

12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

Adjustments

Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items

Debt to capital, excluding securitization debt

Total debt divided by total capitalization, excluding securitization debt

FFO

OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, and other working capital accounts), and securitization regulatory charges

FFO to debt, excluding securitization debt

12-months rolling FFO as a percentage of end of period total debt excluding securitization debt

FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC

12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt

Gross liquidity

Sum of cash and available revolver capacity

Net debt to net capital, excl. securitization debt

Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt

Net liquidity

Sum of cash and available revolver capacity less commercial paper borrowing

Net liquidity, including storm escrows

Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing

Parent debt to total debt, excl. securitization debt

Entergy Corp. debt, incl. amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excl. securitization debt


 

 

 

 

Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.

Appendix F-2: Abbreviations and Acronyms

ADIT

AFUDC

AFUDC –

borrowed funds

ALJ

AMI

ANO


 

APSC

ARO

bps

CCGT

CCNO

Choctaw

COD

CT

CWIP

DCRF

DOE

DSM

E-AR

E-LA

E-MS

E-NO

E-TX

EBITDA


 

EEI

EPS

ETR

EWC

FERC

FFO

FIN 48


 

FRP

GAAP

GCRR

Grand Gulf or

GGNS

IIRR-G

Indian Point 2

or IP2

Indian Point 3

or IP3

IPEC

 

Accumulated deferred income taxes

Allowance for funds used during construction

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

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

Demand side management

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

Edison Electric Institute

Earnings per share

Entergy Corporation

Entergy Wholesale Commodities

Federal Energy Regulatory Commission

Funds from operations

FASB Interpretation No.48, "Accounting for

Uncertainty in Income Taxes"

Formula rate plan

U.S. generally accepted accounting principles

Generation Cost Recovery Rider

Unit 1 of Grand Gulf Nuclear Station (nuclear),

90% owned or leased by SERI

Infrastructure investment recovery rider - gas

Indian Point Energy Center Unit 2 (nuclear)

(shut down April 30, 2020, sold May 28,2021)

Indian Point Energy Center Unit 3 (nuclear)

(shut down April 30, 2021, sold May 28, 2021)

Indian Point Energy Center (nuclear)

(sold May 28, 2021)

 

IRP

IRS

ISES 2

 

LCPS

LPSC

LTM

MCPS

MISO

Moody's

MPSC

MTEP

Nelson 6

NDT

NOPA

NOPS

NOSS

NRC

NYSE

OCAPS

OCF

OpCo

OPEB

Other O&M


 

P&O

Palisades

PMR

PPA


 

PUCT

REC

RFP

ROE

ROIC

RS Cogen

RSP

S&P

SEC

SERI

TCRF

UPSA

WACC

WPEC

Integrated resource plan

Internal Revenue Service

Unit 2 of Independence Steam Electric Station

(coal)

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

IRS Notice of Proposed Adjustment

New Orleans Power Station

New Orleans Solar Station

U.S. Nuclear Regulatory Commission

New York Stock Exchange

Orange County Advanced Power Station

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)

Performance Management Rider

Power purchase agreement or purchased power

agreement

Public Utility Commission of Texas

Renewable energy credit

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

Weighted-average cost of capital

Washington Parish Energy Center

 

 

G: Other GAAP to Non-GAAP Reconciliations

Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE

(LTM $ in millions except where noted)


 

Third Quarter


 

 

2021

2020

As-reported net income (loss) attributable to Entergy Corporation

(A)

1,248

1,385

Preferred dividends


 

18

18

Tax-effected interest expense


 

609

582

As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense

(B)

1,875

1,985


 

 

 

 

Adjustments

(C)

45

252

EWC preferred dividends and tax-effected interest expense included in adjustments


 

15

20


 

 

 

 

Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP)

(D)

60

272


 

 

 

 

Adjusted earnings (non-GAAP)

(A-C)

1,202

1,134

Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP)

(B-D)

1,815

1,713


 

 

 

 

Average invested capital (average of beginning and ending balances)

(E)

35,178

31,442


 

 

 

 

Average common equity (average of beginning and ending balances)

(F)

11,012

10,403


 

 

 

 

As-reported ROIC

(B/E)

5.3%

6.3%

Adjusted ROIC (non-GAAP)

[(B-D)/E]

5.2%

5.4%

As-reported ROE

(A/F)

11.3%

13.3%

Adjusted ROE (non-GAAP)

[(A-C)/F]

10.9%

10.9%


 

Calculations may differ due to rounding

 

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrows

($ in millions except where noted)


 

Third Quarter


 

 

2021

2020

Total debt

(A)

25,695

22,127

Less securitization debt

(B)

90

209

Total debt, excluding securitization debt

(C)

25,606

21,918

Less cash and cash equivalents

(D)

1,000

1,240

Net debt, excluding securitization debt

(E)

24,605

20,678


 

 

 

 

Commercial paper

(F)

1,006

1,398


 

 

 

 

Total capitalization

(G)

37,202

33,153

Less securitization debt

(B)

90

209

Total capitalization, excluding securitization debt

(H)

37,112

32,944

Less cash and cash equivalents

(D)

1,000

1,240

Net capital, excluding securitization debt

(I)

36,112

31,704


 

 

 

 

Debt to capital

(A/G)

69.1%

66.7%

Debt to capital, excluding securitization debt (non-GAAP)

(C/H)

69.0%

66.5%

Net debt to net capital, excluding securitization debt (non-GAAP)

(E/I)

68.1%

65.2%


 

 

 

 

Available revolver capacity

(J)

3,925

4,125


 

 

 

 

Storm escrows

(K)

33

373


 

 

 

 

Gross liquidity (non-GAAP)

(D+J)

4,925

5,364

Net liquidity (non-GAAP)

(D+J-F)

3,919

3,966

Net liquidity, including storm escrows (non-GAAP)

(D+J-F+K)

3,952

4,339


 

 

 

 

Entergy Corporation notes:


 

 

 

Due July 2022


 

650

650

Due September 2025


 

800

800

Due September 2026


 

750

750

Due June 2028


 

650

-

Due June 2030


 

600

600

Due June 2031


 

650

-

Due June 2050


 

600

600

Total Entergy Corporation notes

(L)

4,700

3,400

Revolver draw

(M)

325

150

Unamortized debt issuance costs and discounts

(N)

(51)

(40)

Total parent debt

(F+L+M+N)

5,981

4,909


 

 

 

 

Parent debt to total debt, excluding securitization debt (non-GAAP)

[(F+L+M+N)/C]

23.4%

22.4%


 

Calculations may differ due to rounding

 

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC

($ in millions except where noted)


 

Third Quarter


 

 

2021

2020

Total debt

(A)

25,695

22,127

Less securitization debt

(B)

90

209

Total debt, excluding securitization debt

(C)

25,606

21,918


 

 

 

 

Net cash flow provided by operating activities, LTM

(D)

2,331

3,069


 

 

 

 

AFUDC – borrowed funds, LTM

(E)

(34)

(55)


 

 

 

 

Working capital items in net cash flow provided by operating activities, LTM:


 

 

 

Receivables


 

(183)

(71)

Fuel inventory


 

20

(14)

Accounts payable


 

326

277

Taxes accrued


 

20

188

Interest accrued


 

26

14

Other working capital accounts


 

(124)

(98)

Securitization regulatory charges, LTM


 

98

125

Total

(F)

184

421


 

 

 

 

FFO, LTM (non-GAAP)

(G)=(D+E-F)

2,113

2,594


 

 

 

 

FFO to debt, excluding securitization debt (non-GAAP)

(G/C)

8.3%

11.8%


 

 

 

 

Estimated return of unprotected excess ADIT, LTM

(H)

85

119

Severance and retention payments associated with exit of EWC, LTM pre-tax

(I)

158

17


 

 

 

 

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)]

9.2%

12.5%


 

Calculations may differ due to rounding

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/entergy-reports-third-quarter-earnings-301414952.html

SOURCE Entergy Corporation

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