Slide 1: Third quarter 2024 earnings call
Third quarter 2024 earnings call 0 October 31, 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 3–10 Appendix About Entergy 12 Sustainability highlights 13–14 2024 regulatory milestones 15 Utility 16–39 Financial disclosures 40–43 Financial summaries and Regulation G reconciliations 44–47 2
Slide 4: Key takeaways
Key takeaways Updated capital plan to support incremental 3Q results sales and customer demand for renewables 2024 adjusted EPS 2024 adjusted EPS guidance range narrowed $2.99 3Q $5.99 YTD Longer-term outlooks raised 2024 OCF Credit metric outlooks on track $3.1B YTD Full strategic and fin
Slide 5: Updating capital plan, outlooks
Updating capital plan, outlooks New capital supports higher sales, continued interest in renewables Cumulative weather-adjusted total retail sales Preliminary 24E–28E capital plan; cumulative $B growth vs 2023; TWh 40 41 Analyst day ~11 $7B1 TWh1 24E 25E 26E 27E 28E 24E 25E 26E 27E 28E Residential C
Slide 6: 3Q24 adjusted earnings per share
3Q24 adjusted earnings per share Entergy adjusted EPS; $ 0.10 0.14 (0.06) 0.04 (0.19) (0.08) (0.18) (0.05) 3.27 2.99 3Q23 Utility Utility Utility Utility Utility P&O1 Share effect Other1 3Q24 operating other other other interest rev. less fuel, O&M operating income1 expense purch. power, expenses2 1
Slide 7: 3Q24 operating cash flow
3Q24 operating cash flow Entergy OCF; $M Key drivers (+) Utility fuel and purchased power payments (+) Timing of pension contributions 1,562 (+) Utility customer receipts 1,405 (-) Interest payments (-) 3Q23 DOE award for IPEC 3Q23 3Q24 6
Slide 8: Credit
Credit Credit ratings1 (outlooks) E-AR E-LA E-MS E-NO E-TX SERI ETR Moody’s A2 A2 A2 Baa2 A3 Baa2 Baa2 (stable) (stable) (stable) (stable) (stable) (stable) (stable) S&P A A A BBB A BBB+ BBB+ (stable) (stable) (stable) (stable) (stable) (positive) (stable) Agency Key ETR credit metrics expectation 2
Slide 9: Updated equity plan
Updated equity plan Supports credit and helps fund $7B incremental capital since analyst day Equity needs; $B Completed Remaining need Sufficient market capacity to satisfy with ATM >80% expected to be 3.0 settled in 27E–28E $1.4B done1 in 10 months via forwards using ATM 1.4 25E–26E settlemen
Slide 10: Raising outlooks on higher capital plan
Raising outlooks on higher capital plan Targeting 6% dividend growth Entergy adjusted EPS1; $ 8% – 9% CAGR2 10.10–10.50 6% – 8% CAGR2 9.20–9.60 8.40–8.80 7.50–7.90 7.15–7.35 Analyst day midpoints 24E 25E 26E 27E 28E Vs. analyst day +0.35 +0.55 +0.85 +0.05 No change outlook (+4%) (+6%) (+9%) 1. On a
Slide 11: 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, resilience, and growth Outlooks through • Preliminary capital plan 2028 • Rate base • Financing plan • Adjusted earnings per share • Credit
Slide 12: Appendix
11 Appendix BD) entergy
Slide 13: 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 14: 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 15: 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 16: 2024 regulatory milestones
2024 regulatory milestones 1Q 2Q 3Q 4Q E-LA Sterlington E-LA resilience and grid E-TX DCRF decision • MTEP 2024 approval (MISO) and Coastal hardening plan decision (2Q24 filing) (PUCT) E-NO resilience and grid Prairie Solar LPSC (LPSC) E-TX TCRF and DCRF hardening plan decision decision
Slide 17: 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 18: 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% 17
Slide 19: 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% Note: the percentage of renewable and nuclear
Slide 20: 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) 8/27/24 (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 21: 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 22: Macro factors driving growth in Gulf region
Macro factors driving growth in Gulf region U.S. competitive NGL-to-Brent ratio advantage WTI-to-Brent spread; $/bbl 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 21 Source: Bloomberg
Slide 23: 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 24: Actively expanding renewable footprint
Actively expanding renewable footprint 1,035 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 Segno
Slide 25: 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 26: 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 37.6% (47.0% excluding 37.8% (47.0% excluding $2B $1.8B ADIT at 0% rate) ADIT at 0% ra
Slide 27: Entergy Louisiana
Entergy Louisiana E-LA (currently in rates) Metric Detail – electric Detail – gas1 Authorized ROE 9.3% – 10.1% 9.3% – 10.3% Rate base $16.4B (12/31/23 test year) $0.16B + $0.1B TRM rider2 + $0.3B DRM2 rider +$(0.4B) (9/30/23 test year) tax reform rider WACC (after-tax) 6.81% 7.08% Equity ratio 50.81
Slide 28: E-LA investment to support new customer
E-LA investment to support new customer Filing highlights (docket TBD) • E-LA filed an application seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new customer facility in north Louisiana, including: – three new combined cy
Slide 29: E-LA Bayou Power Station filing
E-LA Bayou Power Station filing Procedural schedule suspended to evaluate cost Project overview (docket U-37131) Item Details MW 112 Estimated cost TBD Location Leeville, LA Targeted in-service date 2028 Proposed recovery mechanism FRP with deferral until costs can be reflected in rates if needed Ke
Slide 30: 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 31: 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 $1.3B $0.2B (12/31/23 test year plus known and measurables through 12/31/24) WACC (after-tax) 7.28% Equity ratio 55% Regulatory FRP with forward-looking featur
Slide 32: 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 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) $0.4B DCRF (through 3/31/24) 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 chan
Slide 34: E-TX generation CCN filing
E-TX generation CCN filing Procedural schedule extended for scope and cost review Project overview (docket 56693) Item Legend Power Station Lone Star Power Station MW 754 453 Est. total investment TBD TBD Plant type CCCT with hydrogen capability and CCS-enabled CT with hydrogen capability Location J
Slide 35: 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 1/21/25 Intervenor testimony 1/28/
Slide 36: E-TX resilience and grid hardening filing
E-TX resilience and grid hardening filing Settlement filed Filing highlights (docket 56735) • Full 10-year plan includes $2.5B investment; filing requests approval of first three years (phase I) • Phase I totals $335M ꟷ $137M funded by E-TX ꟷ $198M contingent on grant funding from the Texas Energy F
Slide 37: E-TX TCRF filing
E-TX TCRF filing Filing highlights (docket 57162) • $137M net transmission investment from 1/1/22 through 6/30/24 • $10M revenue request • ROE, WACC, and equity ratio from most recent rate case Key dates (proposed) Date Event 11/21/24 Intervention and request hearing deadline 11/25/24 Joint proposed
Slide 38: E-TX DCRF filing
E-TX DCRF filing Filing highlights (docket 57121) • Additional $73M net distribution investment since the end of the last DCRF test period (4/1/24) through 6/30/24 • Incremental ~$9M revenue request • ROE, WACC, and equity ratio from most recent rate case Key dates Date Event 4Q24 Targeted decision
Slide 39: System Energy Resources
System Energy Resources Grand Gulf Nuclear Station Energy and capacity allocation1 SERI (most recent monthly bill)2 E-AR Metric Detail E-NO 24% 20% Principal asset Ownership and leasehold interest in GGNS Authorized ROE 9.65% Last calculated $1.83B rate base WACC (after-tax) 7.42% E-LA Equity ratio
Slide 40: E-LA's divestiture of its Grand Gulf share to E-MS
E-LA’s divestiture of its Grand Gulf share to E-MS Filings with MPSC and FERC MPSC filing highlights (docket 2024-UN-112) • Requesting MPSC’s approval to divest E-LA’s 16% of Grand Gulf capacity and energy to E-MS • Purchase initially through MSS-4 Replacement Tariff and ultimately by amending SERI’
Slide 41: Financial disclosures
40 Financial disclosures BD) entergy
Slide 42: Progress against guidance
Progress against guidance Guidance YTD Driver assumption1 result1 Full-year comments ETR adjusted EPS 7.05–7.35 5.99 • Guidance range narrowed to 7.15–7.35 Estimated weather in sales Normal 0.33 Weather-adj. retail sales volume ~4% 2.7% • Now expect ~0.35 YoY ~0.20 0.10 2 Wholesale contract terminat
Slide 43: 2024 ETR adjusted EPS sensitivities
2024 ETR adjusted EPS sensitivities Estimated annual Variable Description of sensitivity EPS impact1 Utility Retail sales growth 1% change in residential MWh sold +/- 0.09 1% change in commercial MWh sold +/- 0.05 1% change in industrial MWh sold +/- 0.02 Other O&M 1% change in expense +/- 0.10 Rate
Slide 44: Financing activity
Financing activity No permanent debt maturities in 4Q241 Third quarter financing activity Amount OpCo Activity Date Rate ($M) Maturity Notes E-LA Issuance 8/9/24 5.15% 700 9/15/34 To repay debt outstanding related to Hurricane Ida and for general corporate purposes E-TX Issuance 8/15/24 5.55% 350 9/
Slide 45: Financial summaries and Regulation G reconciliations
Financial summaries and Regulation G reconciliations 44
Slide 46: Earnings summary
Earnings summary Table 1: Third quarter earnings summary $ in millions Per share in $ 3Q24 3Q23 3Q24 3Q23 As-reported (after-tax) Utility 787 752 3.65 3.54 Parent & Other (142) (85) (0.66) (0.40) Consolidated 645 667 2.99 3.14 Less adjustments Utility - (59) - (0.28) Parent & Other - 32 - 0.15 Conso
Slide 47: Regulation G reconciliations
Regulation G reconciliations Table 2: ETR adjusted earnings Reconciliation of GAAP to non-GAAP measures 3Q24 3Q23 (Pre-tax except for income taxes and totals; $ in millions) Net income (loss) attributable to ETR Corp. 645 667 Less adjustments: Utility - E-AR write-off of assets related to the ANO st
Slide 48: Utility book ROEs
Utility book ROEs Table 3: Utility book ROE summary LTM ending September 30, 2024 ($ in millions) E-AR E-LA E-MS E-NO E-TX Utility1 As-reported earnings available to common stock (a) 426 1,067 226 173 254 2,267 Less adjustments: 4Q23 E-LA 2017 FRP resolution 106 106 4Q23 2016–2018 IRS audit resoluti
Slide 49: ETR
5) entergy