Slide 1: Second quarter 2024 earnings call
Second quarter 2024 earnings call 0 August 1, 2024
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 3–8 Appendix About Entergy 10 Sustainability highlights 11–12 2024 regulatory milestones 13 Utility 14–39 Financial disclosures 41–42 Financial summaries and Regulation G reconciliations 44–48 2
Slide 4: Key highlights
Key highlights Entergy adjusted EPS; $ 0.16 (0.08) • Solid adjusted EPS for the quarter • Remain firmly on track to achieve outlooks • Achieved significant risk reductions 1.84 1.92 – pension lift out – E-LA and SERI settlements (subject to approvals) 2Q23 Utility P&O 2Q24 Calculations may differ du
Slide 5: Second quarter adjusted EPS
Second quarter adjusted EPS Entergy adjusted EPS; $ 0.09 0.46 (0.14) (0.16) (0.07) (0.09) (0.01) 1.84 1.92 1 1 2Q23 Utility Utility Utility Utility Utility P&O Other 2Q24 operating other other other interest rev. less fuel, O&M operating income1 expense 2 purch. power, expenses and reg. chgs.1 Calcu
Slide 6: Second quarter operating cash flow
Second quarter operating cash flow Entergy OCF; $M Key drivers (+) Timing of payments to vendors 1,025 866 (+) Customer receipts 2Q23 2Q24 5
Slide 7: Credit and liquidity
Credit and liquidity Credit ratings1 (outlooks) Key ETR credit metrics Agency E-AR E-LA E-MS E-NO E-TX SERI ETR expectation Outlook2 Moody’s A2 A2 A2 Baa2 A3 Baa2 Baa2 Moody’s (stable) (stable) (stable) (stable) (stable) (stable) (stable) CFO pre-working capital >14% to debt S&P A A A BBB A BBB BB
Slide 8: Equity needs
Equity needs Fulfilled through 2024; ~60% of 2025–2026 contracted Estimated 2021–2024 equity need; $B Estimated 2025–2026 equity need; $B Not yet 0.82 settled 1.40 1.20 1.20 0.58 Equity need Settled as of Equity need ATM contracted Remainder 2021–2024 12/31/231 2025–2026 through to be sourced 1 6/30
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 6.77 7.05–7.35 $6.70 original guidance midpoint 23 24E guidance 25E outlook 26E outlook As-reported 11.10 8 1. Based on original 2023 guidance midpoint of $6.70
Slide 10: Appendix
Appendix 5 entergy
Slide 11: About Entergy
About Entergy Vertically integrated utility with five operating companies in four states – AR, LA, MS, and TX 3 million retail customers 23,879 MW owned and leased generating assets 16,100 circuit miles of interconnected high-voltage transmission lines 106,415 circuit miles of distribution lines 202
Slide 12: A focus on sustainability leadership
A focus on sustainability leadership Environmental Social Robust stewardship responsibility governance For a cleaner world Promoting safety, opportunity, Managing risks and and equity opportunities • Among the cleanest large-scale • Live safe all day, every day • Diverse board with an effective flee
Slide 13: Extensive and transparent sustainability reporting
Extensive and transparent sustainability reporting Visit entergy.com/sustainability Select disclosures EEI's ESG Quantitative Template Performance data table Global Reporting Initiative index EEI's ESG Qualitative Template Sustainable Accounting Standards 2023 statistical report and investor Board d
Slide 14: 2024 regulatory milestones
2024 regulatory milestones 1Q 2Q 3Q 4Q E-AR FRP rates E-LA resilience and grid hardening • E-LA FRP renewal • MTEP 2024 approval effective plan decision (LPSC) decision (LPSC) (MISO) E-LA Sterlington E-TX resilience and grid hardening • E-LA LDC sale decision • E-NO resilience plan and Coast
Slide 15: Utility overview
Utility overview E-AR E-LA1 E-MS E-NO1 E-TX • Electric utility – • Electric and gas utility • Electric utility – • Electric and gas utility • Electric utility – 730,000 customers – 1,105,000 electric 459,000 customers – 208,000 electric 512,000 customers • Authorized ROE: customers • Authorized ROE:
Slide 16: Utility 2023 weather-adjusted electric retail sales
Utility 2023 weather-adjusted electric retail sales 118 TWh Governmental E-TX E-AR 2% 17% 19% Residential 30% E-NO 5% By Industrial By operating 45% customer E-MS company class 11% Commercial E-LA 23% 48% 15
Slide 17: Utility generation overview
Utility generation overview Renewables 1 Renewables 2% Coal 1% 8% Purchases CT / CCGT 17% 44% CT / CCGT Coal Nuclear 43% Owned and 4% 2023 sources 22% leased capability of energy as of 12/31/23 139 TWh 24 GW Nuclear 27% Legacy gas / oil Legacy gas 25% 7% 16 1. Includes generation from both owned and
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 7/5/24 (FRP) 5/31/23 (FRP) 3/1/24 (FRP) 4/30/24 (FRP) 7/1/22 Monthly cost of date (rate case) service Rate effective Jan. following filing Sept. following filing April following filing2 Sept. following filing 35
Slide 19: Industrial customer metrics remain supportive
Industrial customer metrics remain supportive Refining – Light Louisiana Sweet crude 321 Chlor-alkali – polyvinyl chloride margins; crack spread $ per metric ton Jan-16 Jan-18 Jan-20 Jan-22 Jan-24 Jan-16 Jan-18 Jan-20 Jan-22 Jan-24 Steel – capacity utilization; % Petrochemicals – polyethylene margin
Slide 20: Macro factors driving growth in Gulf region
Macro factors driving growth in Gulf region U.S. competitive NGL-to-Brent ratio WTI-to-Brent spread; $/bbl advantage 0.6 0 16 18 20 22 24 26 16 18 20 22 24 26 28 Brent-to-Henry Hub ratio 12 16 18 20 22 24 26 28 19 Source: Bloomberg
Slide 21: 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 Has DOE permit Needs DOE permit Non-ETR U.S. competitive additions advantage ~14 Bcf/d through 2022 ETR additions 0 1
Slide 22: Actively expanding renewable footprint
Actively expanding renewable footprint 935 MW of renewables in service Approved / in progress Regulatory items pending Owned / Est. in Owned / Est. in Project MW PPA service1 Project MW PPA service1 Driver Solar (E-AR) 250 Owned 2024 ETR OpCo filings: West Memphis Solar (E-AR) 180 Owned 2024 Mondu S
Slide 23: Entergy Arkansas
Entergy Arkansas E-AR (currently in rates) Metric Detail Authorized ROE 9.15% – 10.15% Rate base $10.1B retail rate base (2024 test year) WACC (after-tax) 5.62% Equity ratio 38.7% (47.0% excluding $1.9B ADIT at 0% rate) Regulatory construct Forward test year FRP; result outside ROE band reset to mid
Slide 24: E-AR annual FRP filing
E-AR annual FRP filing Filing highlights (docket 16-036-FR) 2023 test year 2025 test year Earned ROE 7.48% 8.43% Rate base (ADIT incl. in WACC, not rate base) $9.3B $11.3B WACC (after-tax) 5.36% 5.57% Equity ratio (traditional equity ratio) 47% 47% Revenue requirements to midpoint $33M $70M Rate cha
Slide 25: Entergy Louisiana
Entergy Louisiana E-LA (currently in rates) Metric Detail – electric1 Detail – gas2 Authorized ROE 9.0% – 10.0% 9.3% – 10.3% Rate base $15.7B (12/31/22 test year)3 $0.16B + $0.3B TRM rider + $0.2B DRM rider – $(0.4B) (9/30/23 test year) tax reform rider WACC (after-tax) 6.66% 7.08% Equity ratio 49.5
Slide 26: E-LA FRP
E-LA FRP Reached agreement in principle on settlement to modify and extend FRP Rate case / FRP extension (docket U-36959) • E-LA, LPSC Staff, and other parties reached an agreement in principle to fully resolve the pending rate case / FRP proceeding, including extending and modifying the FRP • Settl
Slide 27: E-LA natural gas LDC business sale
E-LA natural gas LDC business sale Filing highlights (docket S-37079) • Filing details – Purchase and sale agreements to sell natural gas LDC businesses to affiliates of Bernhard Capital Partners – Terms include a transition period following regulatory approvals, to allow the purchaser time to set u
Slide 28: E-LA Bayou Power Station filing
E-LA Bayou Power Station filing Project overview (docket U-37131) Item Details MW 112 Estimated cost ~$411M including transmission interconnection and other related costs Location Leeville, LA Targeted in-service date 2028 Proposed recovery mechanism FRP with deferral until costs can be reflected in
Slide 29: Entergy Mississippi
Entergy Mississippi E-MS (currently in rates) Metric Detail Authorized ROE 10.91% performance-adjusted midpoint (10.56% + 0.35% performance factor); 9.91% – 11.92% range (annual redetermination based on formula) Rate base $4.5B (2024 forward test year) WACC (after-tax) 7.52% Equity ratio 49.67% Regu
Slide 30: Entergy New Orleans
Entergy New Orleans E-NO (currently in rates) Metric Detail – electric Detail – gas1 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% Regulatory FRP with forward-looking featur
Slide 31: E-NO annual FRP filing
E-NO annual FRP filing Annual FRP (docket UD-18-07) Major drivers of proposed rate change; $M Filing highlights Electric Gas Electric Gas Earned ROE 8.66% 5.87% Expenses (O&M and A&G) 2 – Allowed ROE 9.35% Investment in plant 10 2 Rate base 1.3B 0.2B Income taxes 5 – WACC (after-tax) 7.28% Changes i
Slide 32: E-NO resilience and grid hardening filing
E-NO resilience and grid hardening filing Filing highlights (docket UD 21-03) • Three-year (2025–2027) Phase I plan includes $168M investment1 • Proposed recovery via forward-looking rider Key dates Date Event 4Q24 Targeted settlement See discussion of Rate and Regulatory Matters in the most recent
Slide 33: E-NO natural gas LDC business sale
E-NO natural gas LDC business sale Filing highlights (docket R-24-49) • Purchase and sale agreements to sell natural gas LDC businesses to affiliates of Bernhard Capital Partners • Terms include a transition period following regulatory approvals, to allow the purchaser time to set up systems to run
Slide 34: 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 Historical test year rate case1; interim rate base construct riders: TCRF2, DCRF3, and GCRR4 Key rate changes in $54M base rate change
Slide 35: E-TX generation CCN filing
E-TX generation CCN filing Project overview (docket 56693) Item Legend Power Station Lone Star Power Station MW 754 453 Est. total investment $1.5B $0.7B Plant type CCCT with hydrogen capability and CCS-enabled CT with hydrogen capability Location Jefferson County, TX Liberty County, TX In-service d
Slide 36: E-TX renewable CCN filing
E-TX renewable CCN filing Project overview (docket 56865) Item Segno Solar Votaw Solar MW 170 141 Plant type Solar photovoltaic Solar photovoltaic Location Polk County, TX Hardin County, TX In-service date 2027 2028 Recovery mechanism GCRR GCRR Key dates Date Event 3Q25 Targeted decision 35
Slide 37: E-TX DCRF filing
E-TX DCRF filing Filing highlights (docket 56718) • $396M for net distribution investment through 3/31/24 • $40.3M revenue request • ROE, WACC, and equity ratio from most recent rate case Key dates Date Event 8/2/24 Staff recommendation 8/9/24 E-TX response and recommendations or joint proposed orde
Slide 38: E-TX resilience and grid hardening filing
E-TX resilience and grid hardening filing Filing highlights (docket 56735) • Full 10-year plan includes $2.5B investment; filing requests approval of first 3 years (Phase I) • Phase I totals $335M ꟷ $137M funded by E-TX ꟷ $198M contingent on grant funding from the Texas Energy Fund • Recovery mechan
Slide 39: System Energy Resources
System Energy Resources Grand Gulf Nuclear Station Energy and capacity allocation1 SERI (most recent monthly bill)2 E-NO Metric Detail 17% E-AR Principal asset Ownership and leasehold interest in GGNS 36% Authorized ROE 10.94%2 (E-LA, E-NO); 9.65% (E-AR, E-MS) Last calculated $1.85B rate base E-MS W
Slide 40: SERI global settlements
SERI global settlements SERI litigation risk resolved, pending approvals Highlights MPSC APSC CCNO LPSC Allocation of SERI’s 39.95% 24.19% 19.74% 16.13% sales1 Settlement date Nov. 2022 Oct. 2023 April 2024 July 20242 Settlement amount $235M $142M $116M $95M ROE3 9.65% 9.65% 9.65% 9.65% Equity ratio
Slide 41: Financial disclosures
40 Financial disclosures BD) entergy
Slide 42: Progress against guidance
Progress against guidance Guidance YTD Driver assumption1 result1 Full-year comments ETR adjusted EPS 7.05–7.35 2.99 • 7.05–7.35 guidance affirmed Estimated weather in sales Normal 0.14 Weather-adj. retail sales volume ~4% ~1.4% • Now expect ~0.40 YoY ~0.20 0.06 • Expect ~2/3 of remaining YoY EPS im
Slide 43: 2024 ETR adjusted EPS sensitivities
2024 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 44: Financial summaries and Regulation G reconciliations
Financial summaries and Regulation G reconciliations 43
Slide 45: Earnings summary
Earnings summary Table 1: Second quarter earnings summary $ in millions Per share in $ 2Q24 2Q23 2Q24 2Q23 As-reported (after-tax) Utility 441 514 2.06 2.42 Parent & Other (392) (123) (1.83) (0.58) Consolidated 49 391 0.23 1.84 Less adjustments Utility (112) - (0.52) - Parent & Other (250) - (1.17)
Slide 46: Regulation G reconciliations
Regulation G reconciliations Table 2: ETR adjusted earnings Reconciliation of GAAP to non-GAAP measures 2Q24 2Q23 (Pre-tax except for income taxes and totals; $ in millions) Net income (loss) attributable to ETR Corp. 49 391 Less adjustments: Utility - E-LA global agreement to resolve its FRP extens
Slide 47: Regulation G reconciliations
Regulation G reconciliations Table 3: ETR adjusted earnings Reconciliation of GAAP to non-GAAP measures (Pre-tax except for income taxes and totals; $ in millions) 2023 Net income (loss) attributable to ETR Corp. 2,357 Less adjustments: Utility - 4Q23 customer sharing of tax benefits as a result of
Slide 48: Regulation G reconciliations
Regulation G reconciliations Table 3: ETR adjusted earnings (continued) Reconciliation of GAAP to non-GAAP measures (After-tax, per share in $) 2023 Net income (loss) attributable to ETR Corp. 11.10 Less adjustments: Utility – 4Q23 customer sharing of tax benefits as a result of the 2016–2018 IRS au
Slide 49: Utility book ROEs
Utility book ROEs Table 4: Utility book ROE summary LTM ending June 30, 2024 ($ in millions) E-AR E-LA E-MS E-NO E-TX Utility1 As-reported earnings available to common stock (a) 339 1,077 218 177 286 2,232 Less adjustments: 3Q23 E-AR write-off of assets related to the ANO stator incident (59) (59) 4
Slide 50: Entergy
5) entergy