Slide 1: Pathway to Premier
Pathway to Premier Entergy Corporation Third quarter 2023 earnings call November 1, 2023 Customer service Resilient infrastructure 0 Clean energy Industrial growth
Slide 2: Caution regarding forward-looking statements and Regulation G compliance
Caution regarding forward-looking statements and Regulation G compliance In this presentation, 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, am
Slide 3: Table of contents
Table of contents Section Slides Business discussion 3–9 Appendix Sustainability highlights 11–12 2023 planned activities 13 Utility 14 – 37 Financial disclosures 39 – 42 Financial summaries and Regulation G reconciliations 44 – 47 2
Slide 4: Third quarter results
Third quarter results Entergy adjusted EPS; $ Key takeaways 3Q results driven by: • Record-setting summer temperatures 0.53 (0.10) • The effect of customer-centric investments • Lower other O&M 3.27 • Partially offset by higher diluted average 2.84 common shares outstanding Strong year-to-date resul
Slide 5: Third quarter adjusted EPS
Third quarter adjusted EPS Entergy adjusted EPS; $ 0.13 0.03 0.57 (0.12) (0.05) (0.12) (0.01) 3.27 2.84 4 1 2 3Q22 Utility Utility Utility 4 P&O Income taxes Share effect Other 3Q23 operating operating net interest 3 rev. less fuel, expenses purch. power, and reg. chgs.1,2 See Financial summaries an
Slide 6: Third quarter operating cash flow
Third quarter operating cash flow Consolidated OCF; $M Key drivers (+) Utility fuel and purchased power payments (+) Utility O&M spending 1,405 (+) EWC severance and retention payments 993 (-) Utility customer receipts (primarily lower fuel revenue) (-) Higher pension contributions 3Q22 3Q23 5
Slide 7: Credit and liquidity
Credit and liquidity Credit ratings1 (outlooks) E-AR E-LA E-MS E-NO E-TX SERI ETR S&P A A A BBB A BBB BBB+ (stable) (stable) (stable) (developing) (stable) (negative) (stable) Moody’s A2 A2 A2 Baa2 A3 Baa2 Baa2 (stable) (stable) (stable) (stable) (stable) (negative) (negative) Key ETR credit metrics
Slide 8: Equity needs through 2024 unchanged
Equity needs through 2024 unchanged Estimated 2021–2024 equity needs; $B 0.05 Not yet settled1 1.20 1.07 Settled and issued 0.08 Equity need ATM completed Remainder to be sourced 2021 through 2024 through 9/30/23 as of 9/30/23 Calculations may differ due to rounding 7 1. Does not reflect adjustments
Slide 9: Adjusted EPS guidance and outlooks
Adjusted EPS guidance and outlooks Targeting 60% – 65% dividend payout Entergy adjusted EPS; $ 8.05–8.45 7.50–7.90 7.05–7.35 6.42 6.65–6.85 $6.30 original guidance midpoint 22 23E guidance 24E outlook 25E outlook 26E outlook As-reported Narrowed 5.37 range 8 1. Based on original 2022 guidance midpoi
Slide 10: Looking ahead to the EEI financial conference
Looking ahead to the EEI financial conference Topic Update Strategic • Strong customer growth discussion • Clean energy transition • Investing for reliability and resilience • Other potential customer-centric investment needs Extending • Preliminary capital plan outlooks though • Rate base 2026 • Ad
Slide 11: Appendix
10 Appendix 5 entergy
Slide 12: A focus on sustainability leadership
A focus on sustainability leadership Environmental Social Robust stewardship responsibility governance For a Promoting safety, Managing risks cleaner world opportunity, and equity and opportunities • Among the cleanest large-scale • Developing and maintaining a • Diverse board with an effective mix
Slide 13: Extensive and transparent sustainability reporting
Extensive and transparent sustainability reporting Visit entergy.com/sustainability Select disclosures Integrated Report Climate Policy Priorities and Advocacy TCFD-aligned Climate Report / 2022 Update Diversity, inclusion and belonging strategy CDP Climate Change Questionnaire Performance data tabl
Slide 14: 2023 planned activities
2023 planned activities 1Q 2Q 3Q 4Q E-AR FRP rates • Filing for E-TX 2021 renewable E-AR 2021 renewable • MTEP 2023 approval effective RFP selections (now expected 1Q24) RFP decision (APSC) • E-LA renewable RFP Filing for E-AR 2021 Announcement of E-TX 2022 E-MS 2022 renewable decision (LP
Slide 15: Utility overview
Utility overview E-AR E-LA E-MS E-NO E-TX • Electric utility – • Electric and gas utility • Electric utility – • Electric and gas utility • Electric utility – 730,000 customers – 1,101,000 electric 461,000 customers – 211,000 electric 499,000 customers • Authorized ROE: customers • Authorized ROE: c
Slide 16: Utility 2022 weather-adjusted electric retail sales
Utility 2022 weather-adjusted electric retail sales Governmental E-TX E-AR 2% 18% 18% Residential 30% E-NO 5% By Industrial 44% By operating segment E-MS company 11% Commercial E-LA 24% 48% 15
Slide 17: Utility generation overview
Utility generation overview Renewables 1 Renewables 2% Coal 1% Purchases 9% 16% CT / CCGT 44% CT / CCGT Coal 42% Nuclear 5% 2022 21% Owned and sources of leased capability energy as of 12/31/22 Nuclear 27% Legacy gas / oil Legacy gas 25% 8% 16 1. Includes generation from both owned and purchased pow
Slide 18: Jurisdictional base rate filing frameworks
Jurisdictional base rate filing frameworks E-AR E-LA E-MS E-NO E-TX1 SERI Latest filing 7/7/23 (FRP) 5/31/23 (FRP) 3/1/23 (FRP) 4/28/23 (FRP) 7/1/22 Monthly cost of date (rate case) service Rate effective Jan. following Sept. following filing April following Sept. following filing 35 days after Imme
Slide 19: Industrial customer metrics remain supportive
Industrial customer metrics remain supportive Refining margins, Light Louisiana Sweet crude Chlor-alkali, polyvinyl chloride margins, 321 crack spread $ per metric ton Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Steel, capacity util
Slide 20: U.S. to European spreads driving LNG expansion
U.S. to European spreads driving LNG expansion Ammonia exports benefiting; tight inventories support refining margins NBP to Henry Hub spread; $/MMbtu U.S. LNG export capacity; Bcf/d Non-ETR additions ETR ~14 Bcf/d through 2022 additions Jan-16 Jan-18 Jan-20 Jan-22 Jan-24 Jan-26 16 17 18 19 20 21 22
Slide 21: Actively expanding renewable footprint
Actively expanding renewable footprint Regulatory items pending Owned / Est. in In service MW Project MW PPA service1 Owned 301 ETR OpCo filings: PPA 533 Coastal Prairie Solar (E-LA) 175 PPA 2025 834 Sterlington Solar (E-LA) 49 Owned 2025 224 Approved / in progress Owned / Est. in Other matters: Pro
Slide 22: Entergy Arkansas
Entergy Arkansas E-AR (currently in rates) Metric Detail Authorized ROE 9.15% – 10.15% Rate base $9.2B retail rate base (2023 test year) WACC (after-tax) 5.25% Equity ratio 37.8% (47.0% excluding $1.9B ADIT at 0% rate) Regulatory construct Forward test year FRP; result outside authorized ROE range r
Slide 23: E-AR annual FRP filing
E-AR annual FRP filing Unanimous settlement filed 10/31/23 Filing highlights (docket 16-036-FR) 2022 test 2024 test year year Earned ROE 7.29% 8.11% Rate base (ADIT incl. in WACC, not rate base) $8.8B $10.2B WACC (after-tax) 5.16% 5.62% Equity ratio (traditional equity ratio) 47% 47% Revenue require
Slide 24: Entergy Louisiana
Entergy Louisiana E-LA (currently in rates) Metric Detail – electric1 Detail – gas Authorized ROE 9.0% – 10.0% 9.3% – 10.3% Rate base $15.7B (12/31/22 test year)2 $0.15B + $0.3B for transmission rider (9/30/22 test year) + $0.2B for distribution rider - $(0.4B) for tax reform rider WACC (after-tax)
Slide 25: E-LA recommends modifying and extending FRP
E-LA recommends modifying and extending FRP Also filed full rate case Proposed FRP modifications FRP and rate case summaries (docket U-36959) • Remove cap on distribution recovery mechanism Rate case1 FRP2 • Amortization of production tax credits over the remaining Rate effective years 2024 2024–202
Slide 26: E-LA resilience and grid hardening filing
E-LA resilience and grid hardening filing Resilience and grid hardening filing highlights (docket U-36625) • Plan includes $9.6B investment over 10 years • Phase I seeks approval of $5B of projects over the first five years • Proposed recovery via forward-looking rider with semi-annual true-ups Key
Slide 27: E-LA Sterlington Solar filing
E-LA Sterlington Solar filing Project overview (docket U-36685) Item Details MW 49 Location Sterlington, LA Targeted in-service date 2026 Proposed recovery mechanism FRP, with deferral until costs can be reflected in rates if needed Key dates Date Event 12/12/23 Hearing 26 See discussion of Rate and
Slide 28: E-LA enhanced renewable RFP process
E-LA enhanced renewable RFP process For up to 3,000 megawatts of solar Filing highlights (docket U-36697) • Requests: ‒ Approval of alternative process to secure up to 3,000 MW of solar resources ‒ Expansion of the Geaux Green Option tariff ‒ Approval of new Geaux Zero tariff ‒ Proposed recovery via
Slide 29: Entergy Mississippi
Entergy Mississippi E-MS (currently in rates) Metric Detail Authorized ROE 10.81% performance-adjusted midpoint (10.40% + 0.41% performance factor); 9.74% – 11.88% range (annual redetermination based on formula) Rate base $4.2B (2023 forward test year) WACC (after-tax) 7.06% Equity ratio 46.76% Regu
Slide 30: Entergy New Orleans
Entergy New Orleans E-NO (currently in rates) Metric Detail – electric Detail – gas Authorized ROE 8.85% – 9.85% (9.35% midpoint) Rate base $1.2B $0.2B (12/31/22 test year plus known and measurables through 12/31/23) WACC (after-tax) 6.86% Equity ratio 51%1 Regulatory FRP with forward-looking featur
Slide 31: E-NO Ida cost certification filing
E-NO Ida cost certification filing $209M securitization financing completed December 2022 Storm cost review (docket UD-22-05) Storm cost summary, $M Storm Carrying cost cost Total Hurricane Ida 170 9 179 Key dates Date Event 4Q23 Expected CCNO decision Calculations may differ due to rounding 30 See
Slide 32: E-NO resilience and grid hardening filing
E-NO resilience and grid hardening filing Resilience and grid hardening filing highlights (docket UD 21-03) • Plan includes $1B1 investment over 10 years • Phase I seeks approval of $0.6B of projects over the first five years • Proposed recovery via forward-looking rider Key dates Date Event Nov. 20
Slide 33: Entergy Texas
Entergy Texas E-TX (currently in rates) Metric Detail Authorized ROE 9.57% Rate base $4.4B (12/31/21 test year) WACC (after-tax) 6.61% Equity ratio 51.2% Regulatory construct Rate case and cost recovery riders (distribution, transmission, and generation) Key rate changes in last $54M base rate chang
Slide 34: System Energy Resources
System Energy Resources Grand Gulf Nuclear Station Energy and capacity allocation1 SERI (most recent monthly bill)2,3 Metric Detail E-NO Principal asset An ownership and leasehold interest in Grand 17% E-AR 36% Gulf Nuclear Station Authorized ROE 10.94%4 Last calculated rate base $1.77B WACC (after-
Slide 35: SERI global settlements with MPSC, APSC
SERI global settlements with MPSC, APSC 64% of SERI litigation risk resolved Highlights of SERI / MPSC global settlement • In Nov. 2022, SERI refunded $235 million to E-MS resolving all disputes between SERI and the MPSC in FERC dockets described on slides that follow • The settlement also specified
Slide 36: SERI FERC cases
SERI FERC cases LPSC complaint regarding GGNS sale-leaseback renewal and uncertain tax position (docket EL18-152) • Complaint alleging (1) SERI double-recovering costs by including lease payments and capital additions in UPSA billings and (2) SERI incorrectly excluded FIN 48 liabilities associated w
Slide 37: SERI FERC cases
SERI FERC cases ROE complaints and equity complaint (consolidated dockets EL17-41, EL18-142, EL18-204) • APSC, MPSC, and LPSC filed ROE complaints; LPSC also alleged that SERI’s equity component was unjust and unreasonable (complaints consolidated) • 3/24/21, ALJ initial decision issued Next steps D
Slide 38: SERI FERC cases
SERI FERC cases Prudence complaint (docket EL21-56) • 3/2/21, the LPSC, APSC, and CCNO filed a complaint alleging operational prudence claims, primarily: 1. based on plant capacity factor and alleged safety performance, SERI imprudently operated Grand Gulf during the period 2016–2020, and 2. the per
Slide 39: Financial disclosures
38 Financial disclosures 5 entergy
Slide 40: Progress against guidance (page 1 of 2)
Progress against guidance (page 1 of 2) Guidance Driver assumption1 YTD result1 Full-year comments ETR adjusted EPS 6.55–6.85 6.25 Guidance range narrowed to 6.65–6.85 Estimated weather in sales Normal 0.48 Weather-adj. retail sales volume ~1% (0.4)% • Now expect ~0.5% YoY sales growth (industrial g
Slide 41: Progress against guidance (page 2 of 2)
Progress against guidance (page 2 of 2) Guidance Driver assumption1 YTD result1 Full-year comments Parent & Other excl. income tax ~0.25 0.05 • Now expect ~$0.15 YoY due to lower residual EWC revenue and rate, share effect, and affiliate parent interest 2 preferred 3 Effective income tax rate ~24% ~
Slide 42: 2023 ETR adjusted EPS sensitivities
2023 ETR adjusted EPS sensitivities Estimated annual Variable Description of sensitivity EPS impact Utility Retail sales growth 1% change in residential MWh sold +/- 0.09 1% change in commercial MWh sold +/- 0.05 1% change in industrial MWh sold +/- 0.02 Other O&M 1% change in expense +/- 0.10 Rate
Slide 43: Financing activity
Financing activity Third quarter financing activity Amount OpCo Activity Date Rate ($M) Maturity Notes E-NO Retirement 7/1/23 3.90% 100 n/a Repaid with funds from Dec. 2022 securitization proceeds and $15M increase in 5/31/23 term loan E-TX Issuance 8/11/23 5.80% 350 9/1/53 To finance the constructi
Slide 44: Financial summaries and Regulation G reconciliations
Financial summaries and Regulation G reconciliations 43
Slide 45: Earnings summary
Earnings summary Table 1: Third quarter earnings summary $ in millions Per share in $ 3Q23 3Q22 3Q23 3Q22 As-reported (after-tax) Utility 752 672 3.54 3.29 Parent & Other 2022 EWC - (19) - (0.10) All other (85) (92) (0.40) (0.45) Total Parent & Other (85) (112) (0.40) (0.55) Consolidated 667 561 3.1
Slide 46: Regulation G reconciliations
Regulation G reconciliations Table 2: ETR adjusted earnings Reconciliation of GAAP to non-GAAP measures 3Q23 3Q22 (Pre-tax, $ in millions) Net income (loss) attributable to ETR Corp. 667 561 Less adjustments: Utility - E-AR write-off of assets related to the ANO stator incident (78) - Utility - Inco
Slide 47: Regulation G reconciliations
Regulation G reconciliations Table 3: ETR adjusted earnings Reconciliation of GAAP to non-GAAP measures 2022 (Pre-tax, $ in millions) Net income (loss) attributable to ETR Corp. 1,103 Less adjustments: Utility - E-LA and E-TX true-up for carrying costs on storm expenditures 41 Utility - E-LA contrib
Slide 48: Utility book ROEs
Utility book ROEs Table 4: Utility book ROE summary LTM ending September 30, 2023 ($ in millions) E-AR E-LA E-MS E-NO E-TX Utility1 As-reported earnings available to common stock (a) 246 978 204 70 316 1,904 Less adjustments: SERI depreciation adjustment 24 SERI sale-leaseback reg. liability / DTA t
Slide 49: ETR
5) entergy