10-KPeriod: FY2015

ENTERGY CORP /DE/ Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:ETR

Summary

Entergy Corporation, in its 2015 annual report, outlines its dual operational segments: Utility and Entergy Wholesale Commodities. The Utility segment serves approximately 2.8 million customers across Arkansas, Louisiana, Mississippi, and Texas, generating $11.5 billion in revenue for 2015. The Entergy Wholesale Commodities segment focuses on nuclear power plant operations and decommissioning, with specific mention of planned closures for the Pilgrim and FitzPatrick plants. Entergy's strategy emphasizes operational excellence, reliability, customer service, and sustainability across its businesses. The Utility segment aims to modernize operations and maintain reliability, while the Wholesale Commodities segment focuses on risk management. The company is committed to creating sustainable value for its stakeholders through strategic asset portfolio optimization. The report details various regulatory frameworks governing its operations, including those from federal agencies like the FERC and NRC, as well as state-specific regulatory bodies. The company faces numerous risks, including regulatory changes, market volatility, environmental compliance, and operational challenges within its nuclear fleet. Entergy is actively managing its portfolio, investing in infrastructure upgrades and efficiency improvements to navigate these complexities and maintain its commitment to stakeholders.

Financial Highlights

45 data points
Beta

Net Income

-$156.73M

EPS (Diluted)

$-0.49

Total Assets

$44.65B

Cash & Equivalents

$1.35B

Free Cash Flow

$3.29B

Financial Statements
Beta
Operating Expenses$11.97B
Operating Income-$299.17M
Interest Expense$670.10M
Net Income-$156.73M
EPS (Basic)$-0.49
EPS (Diluted)$-0.49
Shares Outstanding (Basic)358.35M
Shares Outstanding (Diluted)358.35M

Key Highlights

  • 1Entergy operates two main segments: Utility and Entergy Wholesale Commodities, serving approximately 2.8 million customers in four states.
  • 2In 2015, Entergy generated $11.5 billion in revenues, with a workforce of over 13,000 employees.
  • 3The company's strategy focuses on operational excellence, reliability, customer service, and sustainability.
  • 4Entergy Wholesale Commodities is adjusting its portfolio due to planned closures of the Pilgrim and FitzPatrick nuclear plants.
  • 5The Utility segment is investing in modernizing operations and maintaining reliability.
  • 6The company operates under complex federal and state regulatory frameworks.
  • 7Entergy faces risks related to regulatory changes, market volatility, environmental compliance, and nuclear plant operations.

Frequently Asked Questions

Entergy operates primarily through two segments: Utility, which handles generation, transmission, distribution, and sale of electric power to retail customers in Arkansas, Louisiana, Mississippi, and Texas, and Entergy Wholesale Commodities, which includes the ownership, operation, and decommissioning of nuclear power plants and the sale of electricity to wholesale customers.

For the Utility business segment, Entergy's strategic imperative is to modernize operations and maintain reliability. For Entergy Wholesale Commodities, the strategic imperative is to manage the risks within that business.

Entergy faces various risks including utility regulatory risks (delays in rate changes, cost disallowances), nuclear operating and regulatory risks (changes in NRC regulations, plant safety, nuclear fuel supply), environmental risks (compliance with air and water quality regulations), and general business risks such as market performance, capital access, and litigation environments in certain states.

Entergy determined that the FitzPatrick plant will close at the end of its current fuel cycle, planned for January 27, 2017, and the Pilgrim plant will close no later than June 1, 2019. The Vermont Yankee plant ceased power production on December 29, 2014.