Entergy reports 2022 financial results, initiates 2023 earnings … – PR Newswire

Consolidated earnings (GAAP and non-GAAP measures)

Fourth quarter and full year 2022 vs. 2021 (See Appendix A for reconciliation of GAAP to non-GAAP measures and
description of adjustments)

Fourth quarter

Full year

2022

2021

Change

2022

2021

Change

(After-tax, $ in millions)

As-reported earnings

106

259

(152)

1,103

1,118

(15)

Less adjustments

(1)

104

(105)

(217)

(97)

(120)

Adjusted earnings (non-GAAP)

107

155

(48)

1,320

1,215

105

  Estimated weather impact

(1)

(21)

20

86

(21)

107

(After-tax, per share in $)

As-reported earnings

0.51

1.28

(0.77)

5.37

5.54

(0.17)

Less adjustments

–

0.52

(0.52)

(1.05)

(0.48)

(0.57)

Adjusted earnings (non-GAAP)

0.51

0.76

(0.25)

6.42

6.02

0.40

  Estimated weather impact

–

(0.10)

0.10

0.42

(0.11)

0.53

Calculations may differ due to rounding

Appendix A-1: Consolidated earnings – reconciliation of GAAP to non-GAAP measures

Fourth quarter and full year 2022 vs. 2021 (See Appendix A-2 and Appendix A-3 for details on adjustments)

Fourth quarter

Full year

2022

2021

Change

2022

2021

Change

(After-tax, $ in millions)

As-reported earnings (loss)

Utility

241

238

3

1,407

1,490

(84)

Parent & Other

(122)

(68)

(54)

(366)

(249)

(117)

EWC

(12)

89

(101)

63

(123)

186

Consolidated

106

259

(152)

1,103

1,118

(15)

Less adjustments

Utility

12

16

(4)

(280)

27

(306)

Parent & Other

–

(1)

1

–

(1)

1

EWC

(12)

89

(101)

63

(123)

186

Consolidated

(1)

104

(105)

(217)

(97)

(120)

Adjusted earnings (loss) (non-GAAP)

Utility

229

222

7

1,686

1,464

223

Parent & Other

(122)

(67)

(55)

(366)

(248)

(118)

EWC

–

–

–

–

–

–

Consolidated

107

155

(48)

1,320

1,215

105

Estimated weather impact

(1)

(21)

20

86

(21)

107

Diluted average number of common shares outstanding (in millions)

209

203

6

206

202

4

(After-tax, per share in $) (a)

As-reported earnings (loss)

Utility

1.15

1.17

(0.02)

6.84

7.38

(0.54)

Parent & Other

(0.58)

(0.33)

(0.25)

(1.78)

(1.23)

(0.55)

EWC

(0.06)

0.44

(0.50)

0.31

(0.61)

0.92

Consolidated

0.51

1.28

(0.77)

5.37

5.54

(0.17)

Less adjustments

Utility

0.06

0.08

(0.02)

(1.36)

0.13

(1.49)

Parent & Other

–

–

–

–

–

–

EWC

(0.06)

0.44

(0.50)

0.31

(0.61)

0.92

Consolidated

–

0.52

(0.52)

(1.05)

(0.48)

(0.57)

Adjusted earnings (loss) (non-GAAP)

Utility

1.09

1.09

–

8.20

7.25

0.95

Parent & Other

(0.58)

(0.33)

(0.25)

(1.78)

(1.23)

(0.55)

EWC

–

–

–

–

–

–

Consolidated

0.51

0.76

(0.25)

6.42

6.02

0.40

Estimated weather impact

–

(0.10)

0.10

0.42

(0.11)

0.53

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.

Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS)

Fourth quarter and full year 2022 vs. 2021

Fourth quarter

Full year

2022

2021

Change

2022

2021

Change

(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)

Utility

E-LA and E-TX true-up for the equity component of carrying costs for 2020 storms (prior year portion)

–

–

–

41

–

41

E-LA contribution to the LURC related to securitization

–

–

–

(32)

–

(32)

E-LA customer-sharing of securitization benefit

–

–

–

(224)

–

(224)

SERI litigation settlement regulatory charge

–

–

–

(551)

–

(551)

SERI depreciation adjustment

33

–

33

33

–

33

Gain on sale

–

–

–

–

15

(15)

Income tax effect on Utility adjustments above

(8)

–

(8)

183

(4)

187

E-LA tax benefit resulting from securitization

–

–

–

283

–

283

SERI sale-leaseback reg. liability / DTA turnaround

(13)

–

(13)

(13)

–

(13)

Income tax valuation allowance

–

(8)

8

–

(8)

8

Provision for uncertain tax position

–

(5)

5

–

(5)

5

State corporate income tax rate change

–

29

(29)

–

29

(29)

Total Utility

12

16

(4)

(280)

27

(306)

Parent & Other

State corporate income tax rate change

–

(1)

1

–

(1)

1

Total Parent & Other

–

(1)

1

–

(1)

1

EWC

Income before income taxes

(4)

112

(115)

119

(146)

265

Income taxes

(8)

(22)

14

(54)

25

(80)

Preferred dividend requirements

(1)

(1)

–

(2)

(2)

–

Total EWC

(12)

89

(101)

63

(123)

186

Total adjustments

(1)

104

(105)

(217)

(97)

(120)

(After-tax, per share in $) (b)

Utility

E-LA and E-TX true-up for the equity component of carrying costs for 2020 storms (prior year portion)

–

–

–

0.17

–

0.17

E-LA contribution to the LURC related to securitization

–

–

–

(0.15)

–

(0.15)

E-LA customer-sharing of securitization benefit

–

–

–

(0.81)

–

(0.81)

E-LA tax benefit resulting from securitization

–

–

–

1.38

–

1.38

SERI litigation settlement regulatory charge

–

–

–

(2.01)

–

(2.01)

SERI depreciation adjustment

0.12

–

0.12

0.12

–

0.12

Gain on sale

–

–

–

–

0.05

(0.05)

SERI sale-leaseback reg. liability / DTA turnaround

(0.06)

–

(0.06)

(0.06)

–

(0.06)

Income tax valuation allowance

–

(0.04)

0.04

–

(0.04)

0.04

Provision for uncertain tax position

–

(0.02)

0.02

–

(0.02)

0.02

State corporate income tax rate change

–

0.14

(0.14)

–

0.14

(0.14)

Total Utility

0.06

0.08

(0.02)

(1.36)

0.13

(1.49)

Parent & Other

State corporate income tax rate change

–

–

–

–

–

–

Total Parent & Other

–

–

–

–

–

–

EWC

Total EWC

(0.06)

0.44

(0.50)

0.31

(0.61)

0.92

Total adjustments

–

0.52

(0.52)

(1.05)

(0.48)

(0.57)

Calculations may differ due to rounding

(b) 

Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period.

Appendix A-3: Total adjustments by income statement line item (shown as positive/(negative) impact on earnings)

Fourth quarter and full year 2022 vs. 2021

(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)

Fourth quarter

Full year

2022

2021

Change

2022

2021

Change

Utility

Operating revenues

–

–

–

46

–

46

Depreciation/amortization exp.

33

–

33

33

–

33

Regulatory charges (credits)–net

–

–

–

(775)

–

(775)

Other income (deductions)–other

–

–

–

(37)

–

(37)

Other O&M

–

–

–

–

15

(15)

Income taxes

(21)

16

(37)

453

12

441

Total Utility

12

16

(4)

(280)

27

(306)

Parent & Other

Income taxes

–

(1)

1

–

(1)

1

  Total Parent & Other

–

(1)

1

–

(1)

1

EWC

Operating revenues

43

139

(96)

343

698

(355)

Fuel and fuel-related expenses

(18)

(20)

2

(98)

(83)

(16)

Purchased power

(20)

(15)

(4)

(83)

(73)

(11)

Nuclear refueling outage expense

–

(11)

11

(18)

(45)

26

Other O&M

(10)

(53)

44

(103)

(287)

184

Asset write-offs and impairments

–

82

(81)

163

(264)

427

Decommissioning expense

–

(14)

14

(28)

(120)

92

Taxes other than income taxes

(3)

(3)

–

(16)

(17)

1

Depreciation/amortization exp.

(1)

(9)

7

(14)

(44)

30

Other income (deductions)–other

8

18

(10)

(18)

101

(119)

Interest exp. and other charges

(3)

(2)

(1)

(8)

(13)

6

Income taxes

(8)

(22)

14

(54)

25

(80)

Preferred dividend requirements

(1)

(1)

–

(2)

(2)

–

Total EWC

(12)

89

(101)

63

(123)

186

Total adjustments

(1)

104

(105)

(217)

(97)

(120)

Calculations may differ due to rounding

Appendix A-4: Consolidated operating cash flow

Fourth quarter and full year 2022 vs. 2021

($ in millions)

Fourth quarter

Full year

2022

2021

Change

2022

2021

Change

Utility

1,089

420

669

3,031

2,646

385

Parent & Other

(210)

(84)

(126)

(365)

(238)

(127)

EWC

(103)

(46)

(57)

(81)

(108)

27

Consolidated

776

290

486

2,585

2,301

285

Calculations may differ due to rounding

Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d), (e)

Fourth quarter 2022 vs. 2021

(After-tax, per share in $)

Utility

Parent & Other

EWC

Consolidated

As-

reported

Adjusted

As-
reported

Adjusted

As-

reported

As-

reported

Adjusted

2021 earnings (loss)

1.17

1.09

(0.33)

(0.33)

0.44

1.28

0.76

Operating revenue less:

  Fuel, fuel-related expenses and

  gas purchased for resale,

  Purchased power, and

  Regulatory charges (credits)–net

1.02

1.02

(f)

–

–

(0.39)

(g)

0.63

1.02

Nuclear refueling outage expense

(0.02)

(0.02)

–

–

0.04

0.02

(0.02)

Other O&M

(0.18)

(0.18)

(h)

(0.01)

(0.01)

0.17

(i)

(0.02)

(0.19)

Asset write-offs and impairments

–

–

–

–

(0.32)

(j)

(0.32)

–

Decommissioning expense

(0.01)

(0.01)

–

–

0.05

(k)

0.04

(0.01)

Taxes other than income taxes

(0.09)

(0.09)

(l)

–

–

–

(0.09)

(0.09)

Depreciation/amortization exp.

(0.02)

(0.14)

(m)

–

–

0.03

0.01

(0.14)

Other income (deductions)–other

(0.27)

(0.27)

(n)

(0.25)

(0.25)

(o)

(0.03)

(0.55)

(0.52)

Interest exp. and other charges

(0.06)

(0.06)

(p)

(0.02)

(0.02)

–

(0.08)

(0.08)

Income taxes–other

(0.35)

(0.21)

(q)

0.01

0.01

(0.05)

(r)

(0.39)

(0.20)

Share effect

(0.04)

(0.04)

0.02

0.02

–

(0.02)

(0.02)

2022 earnings (loss)

1.15

1.09

(0.58)

(0.58)

(0.06)

0.51

0.51

Calculations may differ due to rounding

Appendix B-2: As-reported and adjusted earnings variance analysis (c), (d), (e)

Full year 2022 vs. 2021

(After-tax, per share in $)

Utility

Parent & Other

EWC

Consolidated

As-

reported

Adjusted

As-
reported

Adjusted

As-

reported

As-

reported

Adjusted

2021 earnings (loss)

7.38

7.25

(1.23)

(1.23)

(0.61)

5.54

6.02

Operating revenue less:

  Fuel, fuel-related expenses and

  gas purchased for resale,

  Purchased power, and

  Regulatory charges (credits)–net

0.90

3.52

(f)

–

–

(1.49)

(g)

(0.59)

3.52

Nuclear refueling outage expense

(0.04)

(0.04)

–

–

0.11

(s)

0.07

(0.04)

Other O&M

(0.89)

(0.84)

(h)

(0.04)

(0.04)

0.71

(i)

(0.22)

(0.88)

Asset write-offs and impairments

–

–

–

–

1.67

(j)

1.67

–

Decommissioning expense

(0.04)

(0.04)

–

–

0.36

(k)

0.32

(0.04)

Taxes other than income taxes

(0.27)

(0.27)

(l)

–

–

–

(0.27)

(0.27)

Depreciation/amortization exp.

(0.40)

(0.52)

(m)

0.01

0.01

0.11

(t)

(0.28)

(0.51)

Other income (deductions)–other

(0.54)

(0.36)

(n)

(0.43)

(0.43)

(o)

(0.46)

(u)

(1.43)

(0.79)

Interest exp. and other charges

(0.21)

(0.21)

(p)

(0.10)

(0.10)

(v)

0.02

(0.29)

(0.31)

Income taxes–other

1.08

(0.16)

(q)

(0.02)

(0.02)

(0.11)

(r)

0.95

(0.18)

Preferred dividend and noncontrolling interest

(0.01)

(0.01)

–

–

–

(0.01)

(0.01)

Share effect

(0.12)

(0.12)

(w)

0.03

0.03

–

(0.09)

(0.09)

2022 earnings (loss)

6.84

8.20

(1.78)

(1.78)

0.31

5.37

6.42

Calculations may differ due to rounding

(c) 

Utility operating revenue / regulatory charges (credits) and Utility income taxes-other exclude the following for the return of unprotected excess ADIT to customers (net effect is neutral to earnings) ($ in millions):

4Q22

4Q21

YTD22

YTD21

Utility operating revenue / regulatory charges (credits)

5

(16)

(45)

(88)

Utility income taxes-other

(5)

16

45

88

(d) 

Utility regulatory charges (credits) and Utility preferred dividend requirements and noncontrolling interest exclude the following for the effects of HLBV accounting and the approved deferral (net effect is neutral to earnings) ($ millions):

4Q22

4Q21

YTD22

YTD21

Utility regulatory charges (credits)

14

18

26

18

Utility preferred dividend requirements and noncontrolling interest

(14)

(18)

(26)

(18)

(e) 

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.

(f) 

The fourth quarter and full year earnings increases were driven by regulatory actions including E-AR’s FRP; E-LA’s FRP (including riders); E-MS’s FRP and various riders; E-NO’s FRP; and E-TX’s TCRF and DCRF. The increases also reflected higher volume, including the effects of weather. Other drivers included: changes in regulatory provisions for decommissioning items (the difference between expense and trust earnings plus costs collected in revenue, largely earnings neutral), higher Grand Gulf revenue, and higher volume for the natural gas distribution business. The full year variance also reflected various regulatory provisions and regulatory reserves (detailed in the table to the right), including the second quarter 2022 $551 million ($413 million after-tax) regulatory charge recorded by SERI to reflect the effects of a partial settlement agreement and offer of settlement related to proceedings pending before the FERC (this item was considered an adjustment and excluded from adjusted earnings), E-LA’s $224 million ($165 million after-tax) regulatory provision for sharing the benefits of E-LA’s securitization with customers (considered an adjustment and excluded from adjusted earnings), the regulatory provision for the true-up of E-LA and E-TX cost of debt from 2020 storms, and $59 million in revenues ($54 million after-tax) for the equity component of carrying charges on those storm costs ($46 million ($42 million after-tax) associated with prior years was considered an adjustment and excluded from adjusted earnings).

(g) 

The fourth quarter and full year earnings decreases included lower revenues from the shutdown of Palisades in May 2022. The full year decrease also reflected the shutdown of Indian Point 3 in April 2021, as well as lower realized wholesale energy price and volume.

(h) 

The fourth quarter and full year earnings decreases from higher Utility other O&M were primarily due to higher power delivery expenses, including vegetation management, reliability, and safety and training costs; higher nuclear generation spending due to higher scope of work and higher labor costs; an increase in non-nuclear generation expenses primarily due to higher costs associated with materials and supplies; higher customer service center support costs; higher bad debt expense; and higher energy efficiency expenses. Also contributing to the full year decrease was a $15 million pretax gain on the sale of an asset in the third quarter 2021 (considered an adjustment and excluded from adjusted earnings).

(i) 

The fourth quarter and full year earnings increases from lower EWC other O&M were due to the shutdown of Palisades in May 2022. The full year increase also reflected the shutdown of Indian Point 3 in April 2021 and lower severance and retention costs. 

(j) 

The fourth quarter earnings decrease from higher EWC asset write-offs and impairments was due primarily to a gain from the settlement of spent fuel litigation at Indian Point recorded in fourth quarter 2021. The full year earnings increase from lower EWC asset write-offs and impairments also reflected the $340 million ($268 million net-of-tax) loss from the sale of Indian Point in May 2021 and a $165 million ($129 million net-of-tax) gain from the sale of Palisades in June 2022.

(k) 

The fourth quarter and full year earnings increases from lower EWC decommissioning expense were due to the sale of Palisades in June 2022. The full year increase also reflected the sale of Indian Point in May 2021. 

(l) 

The fourth quarter and full year earnings decreases from higher Utility taxes other than income taxes were due to higher ad valorem taxes and franchise taxes. The full year decrease also reflected higher employment taxes. 

(m) 

The fourth quarter and full year earnings decreases from higher Utility depreciation/amortization expense were due primarily to higher plant in service and updated depreciation rates for Grand Gulf, effective March 1, 2022. This was partially offset by an adjustment to SERI’s depreciation expense that resulted from FERC’s December 2022 order on the sale-leaseback complaint (considered an adjustment and excluded from adjusted earnings).

(n) 

The fourth quarter and full year earnings decreases from lower Utility other income (deductions)–other included differences in NDT returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral, as described in footnote f), partially offset by higher intercompany dividend income related to the new intercompany investment in preferred stock resulting from E-LA’s securitization compared to the previous affiliate preferred investment that was liquidated (largely offset in P&O). The full year decrease also reflected two items recorded in second quarter 2022 as a result of E-LA securitization: a $32 million reduction to interest and investment income (loss) was recorded to account for LURC’s 1% beneficial interest in the trust established as part of the securitization (considered an adjustment and excluded from adjusted earnings), and an adjustment to AFUDC-equity for the approved equity component of carrying costs on 2020 storms not previously recorded (the portion relating to prior years was considered an adjustment and excluded from adjusted earnings). Recognition of carrying charges on storm restoration costs also contributed to the full year decrease.

(o) 

The fourth quarter and full year earnings decreases from lower Parent & Other other income (deductions)–other were due to the timing of charitable contributions and higher interest related to the intercompany investment in preferred stock resulting from E-LA’s securitization compared to the previous affiliate preferred investment that was liquidated (largely offset in Utility).

(p) 

The fourth quarter and full year earnings decrease from higher Utility interest expense and other charges was due primarily to higher debt balances.

(q) 

The fourth quarter earnings decrease from Utility income taxes-other reflected several items. In fourth quarter 2021, the company recorded: a $29 million decrease in income tax expense as  result of the enactment of Louisiana and Arkansas corporate income tax rate changes, an $8 million valuation allowance as a result of incurring storm restoration costs which impaired the realizability of certain net operating loss carryovers, and a $5 million provision for an uncertain tax position associated with state tax matters (the portion of these three items that related to prior years was considered an adjustment and excluded from adjusted earnings). In fourth quarter 2022, a $13 million increase in income tax expense was recorded as a result of FERC’s sale-leaseback order (this item was considered an adjustment and excluded from adjusted earnings). Additionally, amortization of protected excess ADIT was higher in fourth quarter 2021 as a result of storm damage, and other miscellaneous adjustments of $(6 million) were recorded in fourth quarter 2022 compared to $10 million in fourth quarter 2021. The full year as-reported earnings increase also reflected a second quarter 2022 $283 million income tax benefit related to securitization financing (this item was considered an adjustment and excluded from adjusted earnings).

(r) 

The fourth quarter and full year earnings decreases from EWC income taxes-other were due to a fourth quarter 2022 $9 million valuation allowance recorded on certain charitable contribution carryforwards. The full year decrease also reflected an accrual of an uncertain tax position as a result of a state tax audit in the third quarter 2022.

(s) 

The full year earnings increase from lower EWC nuclear refueling outage expense was due to the shutdown of Palisades in May 2022. 

(t) 

The full year earnings increase from lower EWC depreciation/amortization expense was due to the shutdown of Indian Point 3 in April 2021 and Palisades in May 2022.

(u) 

The full year earnings decrease from lower EWC other income (deductions)–other was due largely to the absence of earnings from NDTs that were transferred in the sale of Indian Point and the performance of Palisades NDTs. 

(v) 

The full year earnings decrease from higher Parent & Other interest expense and other charges was due primarily to higher interest rates and lower intercompany guarantee activity.

(w) 

The full year earnings per share impacts from share effect were due to settlement of equity forward sales in November 2022 under the company’s ATM program.

4Q

FY

Electric volume / weather

0.22

1.02

Retail electric price

0.31

1.30

1Q21 reversal of reg. provision for E-AR’s FRP 2019 netting adj.

–

(0.16)

1Q22 reg. provisions for true-up of E-LA and E-TX cost of debt from 2020 storms

–

0.07

2Q22 increase in provision for potential refunds in SERI complaints

–

(2.01)

2Q22 provision for customer sharing of E-LA securitization benefits

–

(0.81)

2Q22 reg. provisions for true-up of E-LA and E-TX equity carrying costs on 2020 storms

–

0.26

3Q21 MSS-4 ROE reserve adjustment

–

(0.07)

Reg. provision for decommissioning items

0.30

0.75

Retail gas distribution volume

0.03

0.08

Grand Gulf recovery

0.09

0.25

Other

0.07

0.22

Total

1.02

0.90

Appendix C: Utility operating and financial measures

Fourth quarter and full year 2022 vs. 2021

Fourth quarter

Full year

2022

2021

%
Change

% Weather
adjusted (x)

2022

2021

%
Change

% Weather
adjusted (x)

GWh sold

Residential

7,916

7,535

5.1

(2.6)

37,134

35,230

5.4

(0.2)

Commercial

6,284

6,310

(0.4)

2.4

27,982

26,800

4.4

4.6

Governmental

583

581

0.3

0.9

2,512

2,426

3.5

3.6

Industrial

12,599

12,468

1.1

1.1

52,501

49,866

5.3

5.3

Total retail sales

27,382

26,894

1.8

0.3

120,129

114,322

5.1

3.4

Wholesale

3,597

3,291

9.3

15,968

16,656

(4.1)

Total sales

30,979

30,185

2.6

136,097

130,978

3.9

 Number of electric retail customers

Residential

2,564,646

2,546,759

0.7

Commercial

371,407

368,631

0.8

Governmental

18,304

18,202

0.6

Industrial

47,711

50,814

(6.1)

Total retail customers

3,002,068

2,984,406

0.6

 Other O&M and refueling outage expense per MWh

$26.01

$24.85

4.7

$22.32

$21.26

5.0

Calculations may differ due to rounding

(x) 

The effects of weather were estimated using heating degree days and cooling degree days for the period 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.

Appendix D-1: EWC operating and financial measures

Fourth quarter and full year 2022 vs. 2021

Fourth quarter

Full year

2022

2021

% Change

2022

2021

% Change

Owned capacity (MW) (y)

181

1,205

(85.0)

181

1,205

(85.0)

GWh billed

398

2,065

(80.7)

4,570

11,328

(59.7)

EWC nuclear fleet

Capacity factor

–

100 %

n/a

93 %

97 %

(4.1)

GWh billed

–

1,790

n/a

2,741

9,836

(72.1)

Production cost per MWh

–

$28.76

n/a

$26.93

$24.31

10.8

Average energy/capacity revenue per MWh

–

$54.15

n/a

$49.00

$54.67

(10.4)

Calculations may differ due to rounding

(y) 

2022 excludes the Palisades plant (811 MW), which was shut down on 5/20/22, and the RS Cogen power plant (213 MW), which was sold on 10/31/22.

Appendix D-2: EWC adjusted EBITDA – reconciliation of GAAP to non-GAAP measures

Fourth quarter and full year 2022 vs. 2021

($ in millions)

Fourth quarter

Full year

2022

2021

Change

2022

2021

Change

Net income (loss)

(12)

90

(101)

65

(121)

186

Add back: interest expense

3

2

1

8

13

(6)

Add back: income taxes

8

22

(14)

54

(25)

80

Add back: depreciation and amortization

1

9

(7)

14

44

(30)

Subtract: interest and investment income

4

18

(14)

(34)

119

(153)

Add back: decommissioning expense

–

14

(14)

28

120

(92)

Adjusted EBITDA (non-GAAP)

(3)

118

(121)

204

(87)

291

Calculations may differ due to rounding

Appendix E: GAAP and non-GAAP financial measures

Full year 2022 vs. 2021 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)

For 12 months ending December 31

2022

2021

Change

GAAP measure

As-reported ROE

9.0 %

9.9 %

(0.9) %

Non-GAAP financial measure

Adjusted ROE

10.7 %

10.8 %

(0.01) %

As of December 31 ($ in millions, except where noted)

2022

2021

Change

GAAP measures

Cash and cash equivalents

224

443

(218)

Available revolver capacity 

4,241

3,985

256

Commercial paper

828

1,201

(374)

Total debt

26,829

27,154

(326)

Securitization debt

293

84

209

Debt to capital

66.9 %

69.5 %

(2.6) %

Off-balance sheet liabilities:

  Debt of joint ventures – Entergy’s share

–

7

(7)

Storm escrows

402

33

369

Non-GAAP financial measures ($ in millions, except where noted)

Debt to capital, excluding securitization debt

66.6 %

69.4 %

(2.8) %

Net debt to net capital, excluding securitization debt

66.5 %

69.1 %

(2.6) %

Gross liquidity

4,465

4,428

37

Net liquidity

3,638

3,227

411

Net liquidity, including storm escrows

4,040

3,260

780

Parent debt to total debt, excluding securitization debt

18.8 %

22.2 %

(3.4) %

FFO to debt, excluding securitization debt

12.4 %

9.4 %

3.0 %

FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC

12.8 %

10.1 %

2.6 %

Calculations may differ due to rounding

Utility operating and financial measures

GWh sold

Total number of GWh sold 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 total sales

EWC operating and financial measures

Adjusted EBITDA (non-GAAP)

Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense

Capacity factor

Normalized percentage of the period that the nuclear plants generate power

GWh billed

Total number of GWh billed to customers and financially-settled instruments

Owned capacity (MW)

Installed capacity owned by EWC

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)

Financial measures – GAAP

As-reported ROE

12-months rolling net income attributable to Entergy Corp. divided by avg. common equity

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 Corp. divided by avg. common equity

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 regulatory charges, significant income 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 excl. securitization debt

FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC

12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with the 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

ADIT

AFUDC

AFUDC – borrowed funds

AGA

ALJ

AMI

APSC

ATM

bbl

Bcf/D

bps

CAGR

CCGT

CCNO

CFO

COD

DCRF

DTA

E-AR

E-LA

E-MS

E-NO

E-TX

EBITDA
EEI

EPS

ESG

ETR

EWC

FERC

FFO

FIN 48
FRP

GAAP

GCRR

Grand Gulf or GGNS

HLBV

IIRR-G

Accumulated deferred income taxes

Allowance for funds used during construction

Allowance for borrowed funds used during construction

American Gas Association

Administrative law judge

Advanced metering infrastructure

Arkansas Public Service Commission

At the market equity issuance program

Barrels

Billion cubic feet per day

Basis points

Compound annual growth rate

Combined cycle gas turbine

Council of the City of New Orleans

Cash from operations

Commercial operation date

Distribution cost recovery factor

Deferred tax asset

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

Earnings before interest, income taxes, and depreciation and amortization

Edison Electric Institute

Earnings per share

Environmental, social, and governance

Entergy Corporation

Entergy Wholesale Commodities

Federal Energy Regulatory Commission

Funds from operations

FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes”

Formula rate plan

U.S. generally accepted accounting principles

Generation Cost Recovery Rider

Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI

Hypothetical liquidation at book value

Infrastructure investment recovery rider – gas

Indian Point 3
or IP3

IPEC or
Indian Point

LNG

LPSC

LTM

LURC

MISO

MMBtu

Moody’s

MOU

MPSC

MTEP

NBP

NDT

NYSE

OCAPS

OCF

OpCo

OPEB

Other O&M
P&O

Palisades
PMR

PPA
PUCT

RFP

ROE

RS Cogen
RSP

S&P

SEC

SERI

TCRF

TRAM

UPSA

WACC

Indian Point Energy Center Unit 3 (nuclear)
(shut down April 2021, sold May 2021)

Indian Point Energy Center (nuclear)
(sold 5/28/21)

Liquified natural gas

Louisiana Public Service Commission

Last twelve months

Louisiana Utility Restoration Corporation

Midcontinent Independent System Operator, Inc.

Million British thermal units

Moody’s Investor Service

Memorandum of understanding

Mississippi Public Service Commission

MISO Transmission Expansion Plan

National Balancing Point

Nuclear decommissioning trust

New York Stock Exchange

Orange County Advanced Power Station

Net cash flow provided by operating activities

Utility operating company

Other post-employment benefits

Other non-fuel operation and maintenance expense

Parent & Other

Palisades Power Plant (nuclear) (shut down May 2022, sold June 2022)

Performance Management Rider

Power purchase agreement or purchased power agreement

Public Utility Commission of Texas

Request for proposals

Return on equity

RS Cogen facility (CCGT cogeneration) (sold 10/31/22)

Rate Stabilization Plan (E-LA Gas)

Standard & Poor’s

U.S. Securities and Exchange Commission

System Energy Resources, Inc.

Transmission cost recovery factor

Tax reform adjustment mechanism

Unit Power Sales Agreement

Weighted-average cost of capital

Appendix G-1: Reconciliation of GAAP to non-GAAP financial measures – ROE

(LTM $ in millions except where noted)

Fourth quarter

2022

2021

As-reported net income (loss) attributable to Entergy Corporation

(A)

1,103

1,118

Adjustments

(B)

(217)

(97)

Adjusted earnings (non-GAAP)

(A-B)

1,320

1,215

Average common equity (average of beginning and ending balances)

(C)

12,302

11,282

As-reported ROE

(A/C)

9.0 %

9.9 %

Adjusted ROE (non-GAAP)

[(A-B)/C]

10.7 %

10.8 %

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)

Fourth quarter

2022

2021

Total debt

(A)

26,829

27,154

Less securitization debt

(B)

293

84

Total debt, excluding securitization debt

(C)

26,536

27,071

Less cash and cash equivalents

(D)

224

443

Net debt, excluding securitization debt

(E)

26,312

26,628

Commercial paper

(F)

828

1,201

Total capitalization

(G)

40,113

39,079

Less securitization debt

(B)

293

84

Total capitalization, excluding securitization debt

(H)

39,820

38,995

Less cash and cash equivalents

(D)

224

443

Net capital, excluding securitization debt

(I)

39,596

38,553

Debt to capital

(A/G)

66.9 %

69.5 %

Debt to capital, excluding securitization debt (non-GAAP)

(C/H)

66.6 %

69.4 %

Net debt to net capital, excluding securitization debt (non-GAAP)

(E/I)

66.5 %

69.1 %

Available revolver capacity

(J)

4,241

3,985

Storm escrows

(K)

402

33

Gross liquidity (non-GAAP)

(D+J)

4,465

4,428

Net liquidity (non-GAAP)

(D+J-F)

3,638

3,227

Net liquidity, including storm escrows (non-GAAP)

(D+J-F+K)

4,040

3,260

Entergy Corporation notes:

Due July 2022

–

650

Due September 2025

800

800

Due September 2026

750

750

Due June 2028

650

650

Due June 2030

600

600

Due June 2031

650

650

Due June 2050

600

600

Total Entergy Corporation notes

(L)

4,050

4,700

Revolver draw

(M)

150

165

Unamortized debt issuance costs and discounts

(N)

(43)

(49)

Total parent debt

(F+L+M+N)

4,985

6,017

Parent debt to total debt, excluding securitization debt (non-GAAP)

[(F+L+M+N)/C]

18.8 %

22.2 %

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 the exit of EWC

($ in millions except where noted)

Fourth Quarter

2022

2021

Total debt

(A)

26,829

27,154

Less securitization debt

(B)

293

84

Total debt, excluding securitization debt

(C)

26,536

27,071

Net cash flow provided by operating activities, LTM

(D)

2,585

2,301

AFUDC – borrowed funds, LTM

(E)

(28)

(29)

Working capital items in net cash flow provided by operating activities, LTM:

Receivables

(157)

(85)

Fuel inventory

7

18

Accounts payable

(102)

270

Taxes accrued

4

(21)

Interest accrued

4

(11)

Deferred fuel costs

(394)

(466)

Other working capital accounts

(157)

(54)

Securitization regulatory charges, LTM