Entergy Reports Second Quarter Earnings
Entergy Corporation (NYSE: ETR) reported a Q2 2021 loss of $6 million, or (3) cents per share, on an as-reported basis, contrasted with Q2 2020 earnings of $361 million, or $1.79 per share. Adjusted earnings were $1.34 per share, just slightly below the prior year's $1.37. Key highlights included the completion of the Indian Point sale resulting in a $340 million impairment and various regulatory approvals for new projects. Entergy affirmed its adjusted EPS guidance for 2021 at $5.80 to $6.10, expecting to perform in the upper half of this range.
- Affirmed 2021 adjusted EPS guidance range of $5.80 to $6.10, expecting upper half performance.
- Completion of Indian Point sale, enabling strategic focus shift and financial flexibility.
- Approval of Arkansas Walnut Bend Solar project supports growth in sustainable energy.
- Reported a loss of $6 million in Q2 2021 compared to earnings of $361 million in Q2 2020.
- Impairment of $340 million due to sale of Indian Point negatively impacted earnings.
NEW ORLEANS, Aug. 4, 2021 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported a second quarter 2021 loss per share of (3) cents on an as-reported basis and earnings per share of
"We executed on key deliverables and achieved solid second quarter results," said Entergy Chairman and Chief Executive Officer Leo Denault. "Our multi-year efforts to de-risk our business, as recently recognized by Moody's, have unlocked greater financial flexibility, which helps us manage risks and lower our equity needs. As a result, we expect to achieve results in the upper half of guidance and outlook ranges. Our underlying growth outlook is driven by investments that will improve customer outcomes, including those that will provide clean, sustainable energy."
Business highlights included the following:
- The Arkansas Public Service Commission approved Entergy Arkansas' Walnut Bend Solar project.
- Entergy Texas began the process to seek approval to construct hydrogen-capable Orange County Advanced Power Station.
- The Mississippi Public Service Commission approved Entergy Mississippi's annual FRP filing.
- Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans each submitted their annual FRP filings.
- Entergy New Orleans' Green Power Option achieved Green-e® Energy Certification by the Center for Resource Solutions.
- Entergy completed the sale of Indian Point.
- EEI announced Entergy Corporation as a recipient of three EEI emergency response awards.
- For the sixth consecutive year, Entergy was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the U.S.
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Second Quarter and Year-to-Date 2021 vs. 2020 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | (6) | 361 | (367) | 329 | 479 | (151) |
Less adjustments | (275) | 85 | (360) | (238) | (26) | (211) |
Adjusted earnings (non-GAAP) | 269 | 276 | (7) | 566 | 506 | 61 |
Estimated weather in billed sales | (19) | (4) | (15) | 5 | (54) | 59 |
(After-tax, per share in $) | ||||||
As-reported earnings | (0.03) | 1.79 | (1.82) | 1.63 | 2.39 | (0.76) |
Less adjustments | (1.37) | 0.42 | (1.79) | (1.18) | (0.13) | (1.05) |
Adjusted earnings (non-GAAP) | 1.34 | 1.37 | (0.03) | 2.81 | 2.52 | 0.29 |
Estimated weather in billed sales | (0.09) | (0.02) | (0.07) | 0.02 | (0.27) | 0.29 |
Calculations may differ due to rounding | ||||||
Consolidated Results
For second quarter 2021, the company reported a loss of
Summary discussions by business are below. 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 second quarter 2021, the Utility business reported earnings attributable to Entergy Corporation of
- higher other O&M primarily due to higher non-nuclear generation and nuclear expenses, higher distribution spending, as well as higher benefits costs; and
- higher depreciation expense.
These drivers were partially offset by:
- higher retail sales from volume, including recovery from COVID-19; and
- the net effect of regulatory actions across the operating companies.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For second quarter 2021, Parent & Other reported a loss attributable to Entergy Corporation of
Entergy Wholesale Commodities
For second quarter 2021, EWC reported a loss attributable to Entergy Corporation of
- a loss of
$340 million ($268 million net-of-tax) as a result of the sale of Indian Point; - performance of decommissioning trust funds; and
- lower revenue primarily due to the shutdown of Indian Point 2 and Indian Point 3.
These drivers were partially offset by:
- lower operating expenses primarily due to the shutdown of Indian Point 2 and Indian Point 3; and
- lower decommissioning expense due to 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 affirmed its 2021 adjusted EPS guidance range of
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
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, August 4, 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 9088373, no more than 15 minutes prior to the start of the call. The webcast presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. 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 August 11, 2021, by dialing 855-859-2056, conference ID 9088373.
Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to nearly 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
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 of 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 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.
Second 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 Second Quarter and Year-to-Date 2021 vs. 2020 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings (loss) | ||||||
Utility | 326 | 345 | (19) | 682 | 665 | 18 |
Parent & Other | (57) | (69) | 12 | (116) | (159) | 43 |
EWC | (275) | 85 | (360) | (238) | (26) | (211) |
Consolidated | (6) | 361 | (367) | 329 | 479 | (151) |
Less adjustments | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | (275) | 85 | (360) | (238) | (26) | (211) |
Consolidated | (275) | 85 | (360) | (238) | (26) | (211) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 326 | 345 | (19) | 682 | 665 | 18 |
Parent & Other | (57) | (69) | 12 | (116) | (159) | 43 |
EWC | - | - | - | - | - | - |
Consolidated | 269 | 276 | (7) | 566 | 506 | 61 |
Estimated weather in billed sales | (19) | (4) | (15) | 5 | (54) | 59 |
Diluted average number of common shares outstanding (in millions) | 201 | 201 | 201 | 201 | ||
(After-tax, per share in $) (a) | ||||||
As-reported earnings (loss) | ||||||
Utility | 1.62 | 1.71 | (0.09) | 3.39 | 3.31 | 0.08 |
Parent & Other | (0.28) | (0.34) | 0.06 | (0.58) | (0.79) | 0.21 |
EWC | (1.37) | 0.42 | (1.79) | (1.18) | (0.13) | (1.05) |
Consolidated | (0.03) | 1.79 | (1.82) | 1.63 | 2.39 | (0.76) |
Less adjustments | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | (1.37) | 0.42 | (1.79) | (1.18) | (0.13) | (1.05) |
Consolidated | (1.37) | 0.42 | (1.79) | (1.18) | (0.13) | (1.05) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 1.62 | 1.71 | (0.09) | 3.39 | 3.31 | 0.08 |
Parent & Other | (0.28) | (0.34) | 0.06 | (0.58) | (0.79) | 0.21 |
EWC | - | - | - | - | - | - |
Consolidated | 1.34 | 1.37 | (0.03) | 2.81 | 2.52 | 0.29 |
Estimated weather in billed sales | (0.09) | (0.02) | (0.07) | 0.02 | (0.27) | 0.29 |
Calculations may differ due to rounding (a) Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. | ||||||
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Second Quarter and Year-to-Date 2021 vs. 2020 | ||||||
($ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
Utility | 1,014 | 792 | 222 | 937 | 1,395 | (458) |
Parent & Other | (64) | (64) | (1) | (86) | (144) | 59 |
EWC | (154) | 60 | (214) | (105) | 198 | (302) |
Consolidated | 796 | 789 | 7 | 747 | 1,448 | (702) |
Calculations may differ due to rounding | ||||||
OCF increased quarter-over-quarter due primarily to higher collections from Utility customers. This was largely offset by the timing of fuel and purchased power cost recovery, primarily related to increased fuel costs; higher severance and retention payouts at EWC; payments related to storm restoration (non-capital portion); and lower DOE proceeds. Intercompany income tax payments contributed to the line of business variances but were immaterial at the consolidated level.
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) | ||||||
Second Quarter and Year-to-Date 2021 vs. 2020 | ||||||
Second Quarter | Year-to-Date | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
EWC | ||||||
Income before income taxes | (346) | 110 | (455) | (293) | (31) | (261) |
Income taxes | 72 | (24) | 96 | 56 | 6 | 50 |
Preferred dividend requirements | (1) | (1) | - | (1) | (1) | - |
Total EWC | (275) | 85 | (360) | (238) | (26) | (211) |
Total adjustments | (275) | 85 | (360) | (238) | (26) | (211) |
(After-tax, per share in $) (b) | ||||||
EWC | ||||||
Total EWC | (1.37) | 0.42 | (1.79) | (1.18) | (0.13) | (1.05) |
Total adjustments | (1.37) | 0.42 | (1.79) | (1.18) | (0.13) | (1.05) |
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) | ||||||
Second Quarter and Year-to-Date 2021 vs. 2020 | ||||||
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
EWC | ||||||
Operating revenues | 149 | 200 | (51) | 397 | 532 | (135) |
Fuel and fuel-related expenses | (17) | (17) | - | (39) | (37) | (1) |
Purchased power | (18) | (10) | (8) | (36) | (21) | (15) |
Nuclear refueling outage expense | (11) | (12) | 1 | (22) | (24) | 2 |
Other O&M | (83) | (140) | 57 | (182) | (271) | 89 |
Asset write-off and impairments | (342) | (7) | (335) | (345) | (12) | (333) |
Decommissioning expense | (40) | (51) | 12 | (93) | (102) | 9 |
Taxes other than income taxes | (6) | (14) | 8 | (12) | (34) | 22 |
Depreciation/amortization exp. | (14) | (25) | 11 | (27) | (60) | 33 |
Other income (deductions)–other | 41 | 194 | (153) | 75 | 10 | 65 |
Interest exp. and other charges | (4) | (7) | 3 | (8) | (12) | 4 |
Income taxes | 72 | (24) | 96 | 56 | 6 | 50 |
Preferred dividend requirements | (1) | (1) | - | (1) | (1) | - |
Total EWC | (275) | 85 | (360) | (238) | (26) | (211) |
Total adjustments | (275) | 85 | (360) | (238) | (26) | (211) |
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) | ||||||||||
Second Quarter 2021 vs. 2020 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- | As- | Adjusted | ||||
2020 earnings (loss) | 1.71 | 1.71 | (0.34) | (0.34) | 0.42 | 1.79 | 1.37 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)–net | 0.64 | 0.64 | (e) | - | - | (0.23) | (f) | 0.41 | 0.64 | |
Nuclear refueling outage expense | - | - | - | - | - | - | - | |||
Other O&M | (0.38) | (0.38) | (g) | - | - | 0.23 | (h) | (0.15) | (0.38) | |
Asset write-offs and impairments | - | - | - | - | (1.32) | (i) | (1.32) | - | ||
Decommissioning expense | (0.01) | (0.01) | - | - | 0.05 | (j) | 0.04 | (0.01) | ||
Taxes other than income taxes | (0.02) | (0.02) | - | - | 0.03 | 0.01 | (0.02) | |||
Depreciation/amortization exp. | (0.10) | (0.10) | (k) | - | - | 0.04 | (0.06) | (0.10) | ||
Other income (deductions)–other | (0.17) | (0.17) | (l) | 0.02 | 0.02 | (0.60) | (m) | (0.75) | (0.15) | |
Interest exp. and other charges | (0.04) | (0.04) | (0.01) | (0.01) | 0.01 | (0.04) | (0.05) | |||
Income taxes–other | (0.01) | (0.01) | 0.05 | 0.05 | (n) | - | 0.04 | 0.04 | ||
Preferred dividend requirements | - | - | - | - | - | - | - | |||
Share effect | - | - | - | - | - | - | - | |||
2021 earnings (loss) | 1.62 | 1.62 | (0.28) | (0.28) | (1.37) | (0.03) | 1.34 | |||
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- | Adjusted | As- | Adjusted | As- | As- | Adjusted | ||||
2020 earnings (loss) | 3.31 | 3.31 | (0.79) | (0.79) | (0.13) | 2.39 | 2.52 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)–net | 1.43 | 1.43 | (e) | - | - | (0.60) | (f) | 0.83 | 1.43 | |
Nuclear refueling outage expense | 0.02 | 0.02 | - | - | 0.01 | 0.03 | 0.02 | |||
Other O&M | (0.52) | (0.52) | (g) | - | - | 0.35 | (h) | (0.17) | (0.52) | |
Asset write-offs and impairments | - | - | - | - | (1.31) | (i) | (1.31) | - | ||
Decommissioning expense | (0.02) | (0.02) | - | - | 0.03 | 0.01 | (0.02) | |||
Taxes other than income taxes | (0.02) | (0.02) | - | - | 0.09 | (o) | 0.07 | (0.02) | ||
Depreciation/amortization exp. | (0.24) | (0.24) | (k) | - | - | 0.13 | (p) | (0.11) | (0.24) | |
Other income (deductions)–other | (0.06) | (0.06) | (l) | 0.04 | 0.04 | 0.26 | (m) | 0.24 | (0.02) | |
Interest exp. and other charges | (0.09) | (0.09) | (q) | 0.01 | 0.01 | 0.01 | (0.07) | (0.08) | ||
Income taxes–other | (0.42) | (0.42) | (r) | 0.16 | 0.16 | (n) | (0.02) | (0.28) | (0.26) | |
Preferred dividend requirements | - | - | - | - | - | - | - | |||
Share effect | - | - | - | - | - | - | - | |||
2021 earnings (loss) | 3.39 | 3.39 | (0.58) | (0.58) | (1.18) | 1.63 | 2.81 | |||
Calculations may differ due to rounding | ||||||||||
(c) | Utility operating revenue / regulatory charges and Utility income taxes–other exclude |
(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 second quarter and year-to-date earnings increases were driven by higher volume/weather, including recovery from COVID-19; E-LA's FRP; E-TX's GCRR, TCRF and DCRF; E-NO NOPS recovery; and E-MS's FRP. The variance also reflected a regulatory credit for E-MS, primarily for its 2020 lookback evaluation, a reserve adjustment for the FERC MSS-4 ROE decision, higher Grand Gulf revenue due primarily to improved capacity factors (earnings neutral), as well as regulatory credits 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). The year-to-date variance also reflected recovery of the Lake Charles Power Station, the reversal of a regulatory provision for E-AR's 2019 netting adjustment (which was subsequently adjusted), 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 second quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Indian Point 2 in April 2020 and Indian Point 3 in April 2021. |
(g) | The second quarter and year-to-date earnings decreases from higher Utility other O&M were due primarily to higher non-nuclear generation expenses related to timing and scope of outages and new plants placed in service, higher nuclear generation expenses; higher distribution expenses, including higher reliability and vegetation costs; higher benefits costs, primarily health claims activity; and the impact of DOE awards recorded in second quarter 2020. Higher information technology costs as well as higher contract costs related to new customer initiatives also contributed. The year-to-date decrease also reflects lower nuclear insurance refunds. |
(h) | The second quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Indian Point 2 in April 2020 and Indian Point 3 in April 2021, as well as lower severance and retention expenses. |
(i) | The second quarter and year-to-date earnings decreases from higher EWC asset write-offs and impairments were due primarily to a |
(j) | The second quarter earnings increase from lower EWC decommissioning expense was due to the sale of Indian Point in May 2021. |
(k) | The second 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 second quarter and year-to-date earnings decreases from lower Utility other income (deductions)–other were due largely to changes in decommissioning trust fund returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral), as well as lower AFUDC as a result of higher construction work in progress in 2020. |
(m) | The second quarter earnings decrease from lower EWC other income (deductions)–other and the year-to-date earnings increase from higher EWC other income (deductions)–other were due largely to the performance of nuclear decommissioning trust fund investments. The transfer of investments in May 2021 as part of the sale of Indian Point also contributed to the variances. |
(n) | The second quarter earnings increase from Parent & Other income taxes–other reflected a reversal of a |
(o) | 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. |
(p) | The year-to-date earnings increase from lower EWC depreciation expense 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. |
(r) | The year-to-date earnings decrease from Utility income taxes–other primarily relates to two first quarter 2020 items. First, a |
Utility as-reported operating revenue less fuel, fuel-related 2021 vs. 2020 ($ EPS) | ||
2Q | YTD | |
Volume/weather | 0.04 | 0.40 |
Retail electric price | 0.20 | 0.48 |
Reg. provision for E-AR FRP | - | 0.16 |
Reg. liability for tax sharing | - | 0.10 |
Reg. credit for E-MS | 0.07 | 0.07 |
MSS-4 ROE reserve adjustment | 0.05 | 0.05 |
Other, including reg. credit for decommissioning | 0.28 | 0.17 |
Total | 0.64 | 1.43 |
C: Utility Financial and Operating Measures
Appendix C provides comparative summaries of Utility operating and financial measures.
Appendix C: Utility Operating and Financial Measures | |||||||||||||||
Second Quarter and Year-to-Date 2021 vs. 2020 | |||||||||||||||
Second Quarter | Year-to-Date | ||||||||||||||
2021 | 2020 | % | % Weather Adjusted (s) | 2021 | 2020 | % | % Weather Adjusted (s) | ||||||||
GWh billed | |||||||||||||||
Residential | 7,361 | 7,759 | (5.1) | (2.9) | 16,961 | 15,885 | 6.8 | (0.2) | |||||||
Commercial | 6,370 | 6,070 | 4.9 | 6.4 | 12,504 | 12,315 | 1.5 | 1.0 | |||||||
Governmental | 602 | 570 | 5.6 | 6.9 | 1,181 | 1,165 | 1.4 | 2.4 | |||||||
Industrial | 12,690 | 11,847 | 7.1 | 7.1 | 24,148 | 23,662 | 2.1 | 2.1 | |||||||
Total retail sales | 27,023 | 26,246 | 3.0 | 4.0 | 54,794 | 53,027 | 3.3 | 1.1 | |||||||
Wholesale | 4,716 | 3,111 | 51.6 | 9,016 | 6,228 | 44.8 | |||||||||
Total sales | 31,739 | 29,357 | 8.1 | 63,810 | 59,255 | 7.7 | |||||||||
Number of electric retail customers | |||||||||||||||
Residential | 2,542,264 | 2,517,718 | 1.0 | ||||||||||||
Commercial | 362,681 | 362,812 | (0.0) | ||||||||||||
Governmental | 17,867 | 17,940 | (0.4) | ||||||||||||
Industrial | 43,282 | 42,033 | 3.0 | ||||||||||||
Total retail customers | 2,966,094 | 2,940,503 | 0.9 | ||||||||||||
Other O&M and refueling outage expense per MWh | 7.6 | 2.9 | |||||||||||||
Calculations may differ due to rounding (s) 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 4.0 percent driven by reduced impacts from COVID-19. Residential billed sales decreased (2.9) percent and commercial billed sales increased 6.4 percent. Industrial billed sales volume increased 7.1 percent reflecting continued growth from new/expansion customers, higher sales to cogeneration customers, and higher sales to existing large and small customers partially due to reduced COVID-19 impacts and economic recovery.
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 | ||||||
Second Quarter and Year-to-Date 2021 vs. 2020 | ||||||
($ in millions) | Second Quarter | Year-to-Date | ||||
2021 | 2020 | Change | 2021 | 2020 | Change | |
Net income (loss) | (275) | 85 | (360) | (237) | (25) | (211) |
Add back: interest expense | 4 | 7 | (3) | 8 | 12 | (4) |
Add back: income taxes | (72) | 24 | (96) | (56) | (6) | (50) |
Add back: depreciation and amortization | 14 | 25 | (11) | 27 | 60 | (33) |
Subtract: interest and investment income | 50 | 207 | (157) | 97 | 35 | 63 |
Add back: decommissioning expense | 40 | 51 | (12) | 93 | 102 | (9) |
Adjusted EBITDA (non-GAAP) | (338) | (15) | (323) | (262) | 108 | (370) |
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 | ||||||
Second Quarter and Year-to-Date 2021 vs. 2020 | ||||||
Second Quarter | Year-to-Date | |||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |
Owned capacity (MW) (t) | 1,205 | 2,246 | (46.3) | 1,205 | 2,246 | (46.3) |
GWh billed | 2,687 | 4,958 | (45.8) | 7,099 | 11,714 | (39.4) |
EWC Nuclear Fleet | ||||||
Capacity factor | (2.1) | (0.6) | ||||
GWh billed | 2,356 | 4,580 | (48.5) | 6,344 | 10,839 | (41.5) |
Production cost per MWh | 41.4 | 27.4 | ||||
Average energy/capacity revenue per MWh | 30.2 | 16.0 | ||||
Calculations may differ due to rounding (t) 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 | |||
Second Quarter 2021 vs. 2020 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending June 30 | 2021 | 2020 | Change |
GAAP Measures | |||
As-reported ROIC | ( | ||
As-reported ROE | ( | ||
Non-GAAP Financial Measures | |||
Adjusted ROIC | ( | ||
Adjusted ROE | ( | ||
As of June 30 ($ in millions, except where noted) | 2021 | 2020 | Change |
GAAP Measures | |||
Cash and cash equivalents | 687 | 935 | (249) |
Available revolver capacity | 4,125 | 4,110 | 16 |
Commercial paper | 866 | 1,946 | (1,080) |
Total debt | 25,435 | 21,493 | 3,942 |
Securitization debt | 114 | 232 | (118) |
Debt to capital | |||
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 12 | 51 | (39) |
Total off-balance sheet liabilities | 12 | 51 | (39) |
Storm escrow balances | 72 | 373 | (301) |
Non-GAAP Financial Measures ($ in millions, except where noted) | |||
Debt to capital, excluding securitization debt | |||
Net debt to net capital, excluding securitization debt | |||
Gross liquidity | 4,812 | 5,045 | (233) |
Net liquidity | 3,946 | 3,099 | 847 |
Net liquidity, including storm escrow balances | 4,018 | 3,472 | 546 |
Parent debt to total debt, excluding securitization debt | |||
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 | ( | ||
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 | Accumulated deferred income taxes | IRP | Integrated resource plan |
AFUDC | Allowance for funds used during construction | IRS | Internal Revenue Service |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | ISES 2 | Unit 2 of Independence Steam Electric Station (coal) |
AG | Attorney General | ISO | Independent system operator |
ALJ | Administrative law judge | LCPS | Lake Charles Power Station (CCGT) |
AMI | Advanced metering infrastructure | LLS | Light Louisiana Sweet crude |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | LPSC | Louisiana Public Service Commission |
APSC | Arkansas Public Service Commission | LTM | Last twelve months |
ARO | Asset retirement obligation | MCPS | Montgomery County Power Station (CCGT) |
bps | Basis points | MISO | Midcontinent Independent System Operator, Inc. |
CCGT | Combined cycle gas turbine | Moody's | Moody's Investor Service |
CCN | Certificate of convenience and necessity | MPSC | Mississippi Public Service Commission |
CCNO | Council of the City of New Orleans | MT | Metric tons |
Choctaw | Choctaw County Generating Station (CCGT) | MTEP | MISO Transmission Expansion Plan |
COD | Commercial operation date | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CT | Simple cycle combustion turbine | NDT | Nuclear decommissioning trust |
CWIP | Construction work in progress | NGO | Non-governmental organization |
DCRF | Distribution cost recovery factor | NOPA | IRS Notice of Proposed Adjustment |
DOE | U.S. Department of Energy | NOPS | New Orleans Power Station |
DSM | Demand side management | NOSS | New Orleans Solar Station |
E-AR | Entergy Arkansas, LLC | NRC | U.S. Nuclear Regulatory Commission |
E-LA | Entergy Louisiana, LLC | NYSE | New York Stock Exchange |
E-MS | Entergy Mississippi, LLC | OCAPS | Orange County Advanced Power Station |
E-NO | Entergy New Orleans, LLC | OCF | Net cash flow provided by operating activities |
E-TX | Entergy Texas, Inc. | OpCo | Utility operating company |
EBITDA | Earnings before interest, income taxes, and depreciation and amortization | OPEB | Other post-employment benefits |
EEI | Edison Electric Institute | Other O&M | Other non-fuel operation and maintenance expense |
ENP | Entergy Nuclear Palisades, LLC | P&O | Parent & Other |
EPS | Earnings per share | Palisades | Palisades Power Plant (nuclear) |
ETR | Entergy Corporation | PMR | Performance Management Rider |
EWC | Entergy Wholesale Commodities | PPA | Power purchase agreement or purchased power agreement |
FERC | Federal Energy Regulatory Commission | PSC | Public service commission |
FFO | Funds from operations | PUCT | Public Utility Commission of Texas |
FIN 48 | FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes" | PVC | Polyvinyl chloride |
FRP | Formula rate plan | RICE | Reciprocating internal combustion engine |
GAAP | U.S. generally accepted accounting principles | RFP | Request for proposals |
GCRR | Generation Cost Recovery Rider | ROE | Return on equity |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), | ROIC | Return on invested capital |
IIRR-G | Infrastructure investment recovery rider - gas | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) (shut down April 30, 2020, sold May 28,2021) | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) (shut down April 30, 2021, sold May 28, 2021) | S&P | Standard & Poor's |
IPEC or Indian Point | Indian Point Energy Center (nuclear) (sold May 28, 2021) | SEC | U.S. Securities and Exchange Commission |
SERI | System Energy Resources, Inc. | ||
TCRF | Transmission cost recovery factor | ||
UPSA | Unit Power Sales Agreement | ||
WACC | Weighted-average cost of capital | ||
WPEC | 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) | Second Quarter | ||
2021 | 2020 | ||
As-reported net income (loss) attributable to Entergy Corporation | (A) | 1,238 | 1,230 |
Preferred dividends | 18 | 18 | |
Tax-effected interest expense | 600 | 574 | |
As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense | (B) | 1,856 | 1,822 |
Adjustments | (C) | 32 | 80 |
EWC preferred dividends and tax-effected interest expense included in adjustments | 17 | 21 | |
Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP) | (D) | 49
| 101
|
Adjusted earnings (non-GAAP) | (A-C) | 1,206 | 1,150 |
Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,807 | 1,721 |
Average invested capital (average of beginning and ending balances) | (E) | 34,375
| 30,622
|
Average common equity (average of beginning and ending balances) | (F) | 10,657
| 10,112
|
As-reported ROIC | (B/E) | ||
Adjusted ROIC (non-GAAP) | [(B-D)/E] | ||
As-reported ROE | (A/F) | ||
Adjusted ROE (non-GAAP) | [(A-C)/F] | ||
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) | Second Quarter | ||
2021 | 2020 | ||
Total debt | (A) | 25,435 | 21,493 |
Less securitization debt | (B) | 114 | 232 |
Total debt, excluding securitization debt | (C) | 25,321 | 21,261 |
Less cash and cash equivalents | (D) | 687 | 935 |
Net debt, excluding securitization debt | (E) | 24,634 | 20,326 |
Commercial paper | (F) | 866 | 1,946 |
Total capitalization | (G) | 36,577 | 32,173 |
Less securitization debt | (B) | 114 | 232 |
Total capitalization, excluding securitization debt | (H) | 36,463 | 31,941 |
Less cash and cash equivalents | (D) | 687 | 935 |
Net capital, excluding securitization debt | (I) | 35,777 | 31,006 |
Debt to capital | (A/G) | ||
Debt to capital, excluding securitization debt (non-GAAP) | (C/H) | ||
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/I) | ||
Available revolver capacity | (J) | 4,125 | 4,110 |
Storm escrows | (K) | 72 | 373 |
Gross liquidity (non-GAAP) | (D+J) | 4,812 | 5,045 |
Net liquidity (non-GAAP) | (D+J-F) | 3,946 | 3,099 |
Net liquidity, including storm escrows (non-GAAP) | (D+J-F+K) | 4,018 | 3,472 |
Entergy Corporation notes: | |||
Due July 2022 | 650 | 650 | |
Due September 2025 | 800 | 750 | |
Due September 2026 | 750 | 600 | |
Due June 2028 | 650 | 600 | |
Due June 2030 | 600 | - | |
Due June 2031 | 650 | - | |
Due June 2050 | 600 | - | |
Total Entergy Corporation notes | (L) | 4,700 | 2,600 |
Revolver draw | (M) | 150 | 160 |
Unamortized debt issuance costs and discounts | (N) | (52) | (32) |
Total parent debt | (F+L+M+N) | 5,664 | 4,675 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(F+L+M+N)/C] | ||
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) | Second Quarter | ||
2021 | 2020 | ||
Total debt | (A) | 25,435 | 21,493 |
Less securitization debt | (B) | 114 | 232 |
Total debt, excluding securitization debt | (C) | 25,321 | 21,261 |
Net cash flow provided by operating activities, LTM | (D)
| 1,988 | 3,212 |
AFUDC – borrowed funds, LTM | (E) | (38) | (58) |
Working capital items in net cash flow provided by operating activities, LTM: | |||
Receivables | (263) | (5) | |
Fuel inventory | 9 | (35) | |
Accounts payable | 45 | (92) | |
Taxes accrued | 93 | 62 | |
Interest accrued | 3 | 5 | |
Other working capital accounts | (166) | (15) | |
Securitization regulatory charges, LTM | 119 | 123 | |
Total | (F) | (159) | 43 |
FFO, LTM (non-GAAP) | (G)=(D+E-F) | 2,109 | 3,110 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | ||
Estimated return of unprotected excess ADIT, LTM | (H) | 83 | 189 |
Severance and retention payments associated with exit of EWC, LTM pre-tax | (I) | 160 | 102 |
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)] | ||
Calculations may differ due to rounding | |||
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SOURCE Entergy Corporation
