10-KPeriod: FY2017

ENTERGY CORP /DE/ Annual Report, Year Ended Dec 31, 2017

Filed February 26, 2018For Securities:ETR

Summary

Entergy Corporation, in its 2017 annual report, highlights its integrated energy business focused on electric power production and retail distribution, serving 2.9 million customers across Arkansas, Louisiana, Mississippi, and Texas. The company generated $11.1 billion in revenue in 2017, employing over 13,000 individuals. Entergy operates through two primary segments: Utility and Entergy Wholesale Commodities. The Utility segment encompasses generation, transmission, distribution, and sale of electricity and natural gas in its core service areas. The Entergy Wholesale Commodities segment is engaged in the operation and decommissioning of nuclear power plants located in the northern U.S. and sales to wholesale customers, with a strategic imperative to exit this merchant power business. The company's strategy centers on operational excellence, safety, reliability, customer service, and cost efficiency, with a focus on growing the utility business and optimizing its asset portfolio. Key initiatives include modernizing operations, enhancing reliability, and improving customer service within the Utility segment, while managing risks and executing the exit from the merchant power business for Entergy Wholesale Commodities.

Financial Highlights

46 data points
Beta

Revenue

$11.07B

Net Income

$425.35M

3.8% Net Margin

EPS (Diluted)

$1.14

Total Assets

$46.71B

Cash & Equivalents

$781.27M

Free Cash Flow

$2.62B

Financial Statements
Beta
Revenue$11.07B
Operating Expenses$9.83B
Operating Income$1.36B
Interest Expense$707.21M
Net Income$425.35M
EPS (Basic)$1.15
EPS (Diluted)$1.14
Shares Outstanding (Basic)359.34M
Shares Outstanding (Diluted)361.07M

Key Highlights

  • 1Entergy Corporation reported $11.1 billion in revenues for 2017, serving 2.9 million customers across four states.
  • 2The company operates under two main segments: Utility and Entergy Wholesale Commodities.
  • 3Entergy is actively pursuing an exit strategy for its merchant power business within the Entergy Wholesale Commodities segment.
  • 4Strategic imperatives include modernizing utility operations, maintaining reliability, and enhancing customer service.
  • 5The Utility segment relies heavily on natural gas and nuclear generation, aligning with Entergy's environmental commitments.
  • 6The company is subject to significant regulation by federal, state, and local authorities across its operations.
  • 7Entergy continues to invest in infrastructure improvements, including advanced metering initiatives and new generation facilities.

Frequently Asked Questions

Entergy operates primarily through two business segments: Utility, which includes electric and natural gas distribution and sales, and Entergy Wholesale Commodities, which involves the operation and decommissioning of nuclear power plants and sales to wholesale customers.

Entergy's strategic imperative for its Entergy Wholesale Commodities segment is to continue managing the risks associated with its operating portfolio as the company executes its exit from the merchant power business. This includes planned shutdowns or sales of its nuclear power plants.

Entergy's utility operating companies have various rate mechanisms, such as energy cost recovery riders, fuel adjustment clauses, and purchased gas adjustment clauses, designed to recover fuel and purchased power costs. These mechanisms are subject to regulatory review and may include true-up adjustments for over- or under-recoveries.

Entergy is making significant capital investments in modernizing its utility operations, including projects related to transmission infrastructure, distribution systems, advanced metering infrastructure, and the construction of new generation facilities like the St. Charles Power Station and Lake Charles Generating Station.

Entergy's nuclear operations face risks related to plant safety and regulatory compliance, nuclear fuel supply volatility, extended refueling outages, the management of spent nuclear fuel, and decommissioning costs. Events at nuclear plants, even those not owned by Entergy, can also impact the company through regulatory changes or increased oversight.