Entergy Corporation · NYSE:ETR
Entergy — EEI Financial Conference 2024
45 slides from Entergy's conference presentation, November 2024
Slide 1: EEI financial conference
EEI financial conference 0 Nov. 10–12, 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: Delivering customer-centric results
Delivering customer-centric results Investing for significant new growth that benefits stakeholders Starting with Plan to deliver Stakeholder Financial the customer value engagement strength 2
Slide 4: Entergy at intersection of major macro trends
Entergy at intersection of major macro trends Onshoring Clean energy Electrification Technology 3
Slide 5: Delivering what customers want
Delivering what customers want Building off unique advantages in our region Natural advantages What Entergy brings to the table Infrastructure, Business Timely new Clean access to ports friendly service energy Available Proven Value and Customer sites workforce affordability partnership Ability to b
Slide 6: Entergy is attracting new customers
Entergy is attracting new customers Pipeline shows robust growth in all stages Customer pipeline development Growing backlog of ESAs1; MW 7,500 Project study 6,000 Potential FID ESA Customer customer Reimbursement 4,500 agreement 3,000 1,500 Increasing probability in forecast 0 20 21 22 23 24 5 1. E
Slide 7: Strong customer growth
Strong customer growth Cumulative weather-adjusted retail sales growth vs 2023; TWh 41 26 ~11% – 12% Industrial CAGR 18 28E vs 23 12 5 24E 25E 26E 27E 28E Residential Commercial Industrial 6
Slide 8: Large industrials driving growth
Large industrials driving growth History of strong growth over many years ETR large industrial ~5% sales vs. IPI1 Industrial sales; TWh CAGR ETR large industrial sales 70 (12-month moving average) 60 50 40 Large ~1% 30 IPI CAGR 20 Small 10 Cogen 0 09 16 23 09 11 13 15 17 19 21 23 25E 27E 28E 7 1. In
Slide 9: Supportive macro factors in Gulf region
Supportive macro factors in Gulf region NBP to Henry Hub spread; $/MMbtu Brent-to-Henry Hub ratio U.S. competitive advantage 12 0 16 18 20 22 24 26 16 18 20 22 24 26 28 NGL-to-Brent ratio WTI-to-Brent spread; $/bbl 0.6 0 16 18 20 22 24 26 16 18 20 22 24 26 28 8 Source: Bloomberg and internal analysi
Slide 10: Diversified large industrials
Diversified large industrials Industry and geographic diversity Large industrials Large industrials Sales growth 28E vs 23; TWh Sales volume by year; TWh ~72 ~38 ~38 E-TX E-MS E-LA E-AR By OpCo By industry 24E 25E 26E 27E 28E Other Technology Other chemicals Agricultural chemicals Transportation Pri
Slide 11: Robust, diverse pipeline for long-term growth
Robust, diverse pipeline for long-term growth Datacenters Material processing Chemical processing ~5–10 GW ~2–3 GW ~1–2 GW LNG H2 / ammonia ~1–2 GW ~3–4 GW Note: Very large potential customers are not added to financial outlooks until there is significant certainty that they will become an Entergy o
Slide 12: Capturing new large customers
Capturing new large customers Starts with stakeholder engagement Guiding principles Customers Delivers benefits for all key stakeholders Responsive to customer timeline without Elected Regulators compromising regulatory oversight officials Includes customer protections Owners Vendors • Minimum
Slide 13: A clean portfolio and getting cleaner
A clean portfolio and getting cleaner Expanding renewables, planning for optionality with H2, CCS Planned resource capacity; GW Analyst day ~43 ~36 ~26 23 28E 1 33E1 Nuclear Renewables H2 and CCS capable 2 Modern gas Legacy gas Coal Non-generating resources 3 Includes owned resources and purchased p
Slide 14: Growing renewables
Growing renewables $4B renewable capital investment planned 25E–28E (up $2.8B since analyst day) Renewables and storage capacity; GW Batteries • Strong customer interest in green tariffs • Plan includes renewable capacity to serve recently-announced new ~11GW Renewables customer in LA ~7GW • Recentl
Slide 15: Developing CCS with plan to deploy at LCPS
Developing CCS with plan to deploy at LCPS When operationally and financially feasible; not yet included in capital plan DOE-funded FEED study CCS service feasibility study CCS funding options • $18M project • Crescent Midstream developing • DOE awards ($9M funded from DOE award) comprehensive feasi
Slide 16: Pursuing nuclear growth
Pursuing nuclear growth Supports ongoing conversations with interested customers Entergy is well positioned Supporting industry and state-level efforts to evaluate new nuclear Exploring potential uprates Early site permit for a potential new reactor at Grand Gulf site MS Senate Energy MOU with
Slide 17: Customers value low rates
Customers value low rates Spending discipline contributes to advantage Scale advantage Creating incremental value Average industrial rates1 National average Continuous AI Entergy Utilities improvement Process automation Workforce training Capital Cross functional capital efficiency project r
Slide 18: Residential value and affordability
Residential value and affordability Delivering desired outcomes; economic development supports relative affordability Illustrative Illustrative Wtd. avg. residential bill1; $ Unemployment rate by state2; % Share of income spent on residential electricity3,4; % 20 5 ~3% CAGR 28E vs 23 16 4 ~3% inflat
Slide 19: Federal programs lower costs for customers
Federal programs lower costs for customers $0.3B $1.7B $2.4B Federal grants awarded to ETR Partner grants supported DOE loan applications Opportunity Awarded Opportunity Awarded Part 2 applications for 41 solar and Infrastructure Investment and $119M Louisiana HERO $500M Jobs Act (IIJA) T&D projec
Slide 20: Investing to deliver what customers want
Investing to deliver what customers want Four-year capital plan 2025E–2028E preliminary capital plan by function1 Other Generation 2 Distribution baseline 4 8 $34B Other new 9 generation 8 Transmission 4 Renewables Calculations may differ due to rounding 19 1. Excludes capital funded with contributi
Slide 21: Investment for customers supports growth
Investment for customers supports growth Capital investment and depreciation expense; Projected rate base1,2; $B cumulative1; $B 34 25 63 57 50 45 17 40 8 25E 26E 27E 28E 24E 25E 26E 27E 28E Capital investment Depreciation expense 1. Excludes capital funded with contribution in aid of construction f
Slide 22: Raising outlooks on higher capital plan
Raising outlooks on higher capital plan Strong track record of delivering results in top half of guidance range 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 N
Slide 23: Delivering strong credit and cash flow
Delivering strong credit and cash flow Building capacity for unexpected events, stronger growth Credit outlooks Moody’s CFO pre-working capital to debt 16 Cumulative OCF outlook; $B 15 Capacity 14 ~$21B Moody’s downgrade threshold 25E–28E 13 24E 25E 26E 27E 28E S&P FFO to debt 16 15 Capacity 25E 26E
Slide 24: Delivering customer-centric results
Delivering customer-centric results Investing for significant new growth that benefits stakeholders Starting with Plan to deliver Stakeholder Financial the customer value engagement strength 23
Slide 25: Appendix
24 Appendix 5 entergy
Slide 26: 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 27: 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 28: Among the cleanest large-scale fleets in the U.S.
Among the cleanest large-scale fleets in the U.S. CO2 emission rates of top 20 privately-owned / investor-owned power producers; lbs per MWh Entergy Utility 677 Based on Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States, published Nov. 2023 (2021 data) 27
Slide 29: Planned exit from coal
Planned exit from coal Intend to retire all coal-fired capacity by the end of 2030 Coal generation of top 20 privately-owned / investor-owned power producers; TWh • Less than 3% of 2023 revenue from coal assets • ~1% of 2023 rate base comprised of coal assets Entergy Utility Based on Benchmarking Ai
Slide 30: Clean energy transition technologies
Clean energy transition technologies Illustrative 2030 2040 Currently unknown Advanced gen, zero carbon resources Expected to be viable Long duration storage H2 power generation Small modular reactors (nuclear) CCS Known and proven Wind Gas with H2 capability Battery energy storage system Solar Exis
Slide 31: Diversity, inclusion, and belonging
Diversity, inclusion, and belonging Diversity • Attract, develop, grow, and retain a diverse representation of high-performing talent • Encourage and celebrate our diversity of backgrounds, perspectives, skills, and approaches Culture • Engage, enable, and empower employees in an inclusive culture o
Slide 32: Board diversity
Board diversity Effective mix of skills, experience, backgrounds, and perspectives Board skills Board demographics Number of Board members with specified skill Age (years) Tenure (years) Risk management 10 18% 18% 27% 46% 0 to 5 51 to 60 Finance / accounting 9 61 to 69 6 to 10 Technology / transform
Slide 33: Awards and recognition
Awards and recognition Edison Electric Institute U.S. Department of Labor Dow Jones Sustainability Black Enterprise National Key Accounts Gold HIRE Vets Index North America Magazine’s Best Outstanding Customer Medallion Award Companies for Diversity Engagement 2023 Global ERG Points of Light Women’s
Slide 34: 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 35: Helping customers achieve clean energy goals
Helping customers achieve clean energy goals Industrial scope 1 emissions by state; 2023 annual short tons of CO2 (millions) ~128 (estimated) PA AL AR VT WY KS KY AK WA SC VA WV WI AZ SD GA OR TX ETR Industrials OH OK TN FL HI RI IN CA IL IA ND CO NY NE NM UT NJ NC DE ID NV CT NH DC LA MI MN MO MS M
Slide 36: Strong long-term retail sales growth
Strong long-term retail sales growth Driven by diverse industrial growth; residential and commercial essentially flat Five-year sales trends; MWh Total retail Industrial ~6% CAGR ~11% – 12% CAGR 23 24E 25E 26E 27E 28E 23 24E 25E 26E 27E 28E 35
Slide 37: Adjusted EPS – preliminary 25E drivers
Adjusted EPS – preliminary 25E drivers Category Considerations Retail volume • Preliminary estimate for weather-adjusted retail sales growth ~5.5% (largely industrial, some residential growth) – Estimated EPS contribution higher than rule of thumb because of new demand charges • YTD 3Q24 weather $0.
Slide 38: Preliminary three-year capital plan by OpCo
Preliminary three-year capital plan by OpCo1 $M E-AR 2025E 2026E 2027E Total E-LA 2025E 2026E 2027E Total Distribution 395 325 375 1,095 Distribution2 1,085 1,015 620 2,720 Transmission 115 140 85 340 Transmission 945 1,450 1,280 3,675 Generation Generation Renewables - - - - Renewables 155 325 1,17
Slide 39: Preliminary three-year capital plan by OpCo (continued)
Preliminary three-year capital plan by OpCo1 (continued) $M E-TX 2025E 2026E 2027E Total SERI 2025E 2026E 2027E Total Distribution 415 365 275 1,055 Distribution - - - - Transmission 295 400 815 1,510 Transmission - - - - Generation Generation Renewables 255 190 170 615 Renewables - - - - Other new
Slide 40: Maintaining credit with higher capital plan
Maintaining credit with higher capital plan Plan includes corporate minimum taxes; nuclear PTC benefits not included Cash flow to debt outlook1 Illustrative ~15% ~15% ~15% Analyst day Improved CAMT Incremental debt New equity Current 28E outlook cash flow excluding equity 28E outlook 39 1. Illustrat
Slide 41: Updated equity plan
Updated equity plan Supports credit, helps fund 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 1.4 via forwards using ATM 25E–26E settlement 26E–2
Slide 42: Debt maturity schedule
Debt maturity schedule Debt maturity schedule as of 9/30/241; $M Company 4Q24E 2025E 2026E 2027E 2028E E-AR - - 600 - 350 E-LA - 300 650 450 425 E-MS - - - 150 375 E-NO - 78 85 - - E-TX - - 130 150 - SERI - 200 - - 325 Total Utility - 578 1,465 750 1,475 ETR Corp. - 800 750 - 650 Total - 1,378 2,215
Slide 43: Acronyms and abbreviations
Acronyms and abbreviations AFUDC – Allowance for borrowed funds used during DCRF Distribution cost recovery factor debt construction AFUDC – Allowance for equity funds used during DOE U.S. Department of Energy equity construction AI Artificial intelligence DRM Distribution Recovery Mechanism (E-LA’s
Slide 44: Acronyms and abbreviations (continued)
Acronyms and abbreviations (continued) FFO Funds from operations MPSC Mississippi Public Service Commission FID Final investment decision NBP National balancing point FRP Formula rate plan NGL Natural gas liquids Grand Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% NGO Non-governmental organiza
Slide 45: ETR
>) entergy