Company affirms guidance and outlooks NEW ORLEANS, April 24, 2024 /PRNewswire/ -- Entergy Corporation (NYSE:ETR) reported first quarter 2024 earnings per share of 35 cents on an as-reported basis and $1.08 on an adjusted (non-GAAP) basis. "We made very important regulatory progress in recent weeks that will deliver meaningful value for customers and provide certainty for all stakeholders," said Drew Marsh, Entergy Chair and Chief Executive Officer. "We remain squarely on track with clear line of sight to achieve our commitments in 2024 and beyond." Business highlights included the following: SERI reached an agreement in principle with the CCNO to resolve all of the CCNO's complaints against SERI; the settlement is subject to FERC approval. The LPSC approved the first phase of E-LA's resilience and grid hardening plan of $1.9 billion as well as a timely recovery mechanism for that investment. E-NO received CCNO approval for a resilience investment that includes a microgrid that will be co-funded by the DOE as part of a successful GRIP application. Grand Gulf completed its 24th refueling outage in March with a 28-day duration, the plant's shortest since 2007. E-NO filed an updated Phase 1 resilience and grid hardening plan. E-LA submitted a filing to the LPSC requesting approval to construct Bayou Power Station, a 112-megawatt floating natural gas power station. E-MS filed its annual formula rate plan. S&P Global Ratings revised its outlook to positive and affirmed all ratings for SERI following SERI's recent agreement in principle with the CCNO. Entergy was named as an Outstanding National Key Accounts Customer Engagement 2023 Award winner by The Edison Electric Institute. Consolidated earnings (GAAP and non-GAAP measures) First quarter 2024 vs. 2023 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) First quarter 2024 2023 Change (After-tax, $ in millions) As-reported earnings 75 311 (236) Less adjustments (155) 69 (223) Adjusted earnings (non-GAAP) 230 242 (12)   Estimated weather impact (26) (47) 21 (After-tax, per share in $) As-reported earnings 0.35 1.47 (1.11) Less adjustments (0.72) 0.32 (1.05) Adjusted earnings (non-GAAP) 1.08 1.14 (0.07)   Estimated weather impact (0.12) (0.22) 0.10 Calculations may differ due to rounding Consolidated results For first quarter 2024, the company reported earnings of $75 million, or 35 cents per share, on an as-reported basis, and earnings of $230 million, or $1.08 per share, on an adjusted basis. This compared to first quarter 2023 earnings of $311 million, or $1.47 per share, on an as-reported basis, and earnings of $242 million, or $1.14 per share, on an adjusted basis. Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of variances by business is provided in Appendix B. Business segment results Utility For first quarter 2024, the Utility business reported earnings attributable to Entergy Corporation of $195 million, or 91 cents per share, on an as-reported basis, and earnings of $350 million, or $1.64 per share, on an adjusted basis. This compared to first quarter 2023 earnings of $397 million, or $1.87 per share, on an as-reported basis and $329 million, or $1.55 per share, on an adjusted basis. Several drivers contributed to the quarter's results. First quarter 2024 results included the write off of a $132 million ($97 million after tax) regulatory asset at Entergy Arkansas related to the opportunity sales proceeding (considered an adjustment and excluded from adjusted earnings). First quarter 2024 results also included a regulatory charge of $(79 million) ($(57 million) after tax) recorded by Entergy New Orleans to reflect the company's agreement to share additional income tax benefits from the 2016–2018 IRS audit resolution with customers (considered an adjustment and excluded from adjusted earnings).  In first quarter 2023, as a result of E-LA receiving securitization proceeds for storm cost recovery, the company recorded the following (considered adjustments and excluded from adjusted earnings): a $129 million reduction in income tax expense, $31 million of carrying costs on storm expenditures not previously recorded, a $(15 million) reduction in other income to account for LURC's 1 percent beneficial interest in a trust established as part of the securitization, and a $(103 million) ($(76 million) after tax) regulatory provision to share the benefits from securitization with customers. Other drivers for the quarter included higher operating expenses including other O&M and depreciation expense. These drivers were partially offset by: the net effect of regulatory actions across the operating companies, higher other income (deductions) primarily from affiliate preferred investments (largely offset at P&O) and lower non-service pension costs, and higher retail sales volume including the effects of weather. Appendix C contains additional details on Utility operating and financial measures. Parent & Other For first quarter 2024, Parent & Other reported a loss attributable to Entergy Corporation of $(120 million), or (56) cents per share, on an as-reported and an adjusted basis. This compared to a first quarter 2023 loss of $(86 million), or (41) cents per share, on an as-reported and an adjusted basis. The primary driver for the quarter-over-quarter decline was other income (deductions) due primarily to dividends associated with affiliate preferred investments (largely offset at Utility). Earnings per share guidance Entergy affirmed its 2024 adjusted EPS guidance range of $7.05 to $7.35. See webcast presentation for additional details. The company has provided 2024 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. 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. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items. Earnings teleconference A teleconference will be held at 10:00 a.m. Central Time on Wednesday, April 24, 2024, 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 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy's website concurrent with this news release. 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 May 2, 2024, by dialing 800-770-2030, conference ID 9024832. Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. We're investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism, and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. 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/investors. Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and other information, which provides investors with key updates on 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 E. 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." 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 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 ROE; adjusted ROE, excluding affiliate preferred; 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; and FFO to debt, excluding securitization debt, 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, ROE is included on both an adjusted and an as-reported basis. Metrics defined as "adjusted" exclude the effect of adjustments as defined above.  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 2024 earnings guidance; current financial and operational outlooks; industrial load growth outlooks; statements regarding its climate transition and resilience plans, goals, beliefs, or expectations; 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 or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) 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 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) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (i) effects on Entergy or its customers of (1) 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; (2) the effects of changes in commodity markets, capital markets, or economic conditions; and (3) the effects of technological change, including the costs, pace of development, and commercialization of new and emerging technologies. First quarter 2024 earnings release appendices and financial statements Appendices A: Consolidated results and adjustmentsB: Earnings variance analysisC: Utility operating and financial measuresD: Consolidated financial measuresE: Definitions and abbreviations and acronymsF: Other GAAP to non-GAAP reconciliations Financial statements Consolidating balance sheetsConsolidating income statementsConsolidated cash flow statements A: Consolidated results and adjustmentsAppendix 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 First quarter 2024 vs. 2023 (See Appendix A-2 and Appendix A-3 for details on adjustments) First quarter 2024 2023 Change (After-tax, $ in millions) As-reported earnings (loss) Utility 195 397 (202) Parent & Other (120) (86) (34) Consolidated 75 311 (236) Less adjustments Utility (155) 69 (223) Parent & Other - - - Consolidated (155) 69 (223) Adjusted earnings (loss) (non-GAAP) Utility 350 329 21 Parent & Other (120) (86) (34) Consolidated 230 242 (12) Estimated weather impact (26) (47) 21 Diluted average number of common shares outstanding (in millions) 214 212 2 (After-tax, per share in $) (a) As-reported earnings (loss) Utility 0.91 1.87 (0.96) Parent & Other (0.56) (0.41) (0.15) Consolidated 0.35 1.47 (1.11) Less adjustments Utility (0.72) 0.32 (1.05) Parent & Other - - - Consolidated (0.72) 0.32 (1.05) Adjusted earnings (loss) (non-GAAP) Utility 1.64 1.55 0.09 Parent & Other (0.56) (0.41) (0.15) Consolidated 1.08 1.14 (0.07) Estimated weather impact (0.12) (0.22) 0.10 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 and Appendix A-3 detail 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-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS) First quarter 2024 vs. 2023 First quarter 2024 2023 Change (Pre-tax except for income taxes and totals; $ in millions)