10-KPeriod: FY2023

ENTERGY CORP /DE/ Annual Report, Year Ended Dec 31, 2023

Filed February 23, 2024For Securities:ETR

Summary

Entergy Corporation (ETR) reported its 2023 fiscal year results, operating primarily through its Utility segment, which serves approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas. The company generated $12.1 billion in annual revenues and employed about 12,000 individuals as of December 31, 2023. Entergy's strategy focuses on customer-centric utility business growth, emphasizing investments in reliability, resilience, and clean energy while maintaining affordability. The company actively manages risks through customer-driven investments, robust analysis, stakeholder engagement, and regulatory constructs. Entergy continues to integrate sustainability into its operations, covering social responsibility and governance.

Financial Statements
Beta
Revenue$12.15B
Operating Expenses$9.53B
Operating Income$2.62B
Interest Expense$1.05B
Net Income$2.36B
EPS (Basic)$5.57
EPS (Diluted)$5.55
Shares Outstanding (Basic)423.14M
Shares Outstanding (Diluted)424.75M

Key Highlights

  • 1Entergy Corporation's primary business segment is its Utility operations, serving approximately 3 million electric customers across four states.
  • 2The company's strategy is centered on a customer-centric approach to grow its utility business, investing in reliability, resilience, and clean energy.
  • 3Entergy has a diverse generation portfolio, increasingly incorporating carbon-free energy sources.
  • 4The company operates under a cost-of-service and rate-of-return regulatory framework, with rates determined through regulatory proceedings.
  • 5Key risks include utility regulatory risks, nuclear operating risks, business risks such as access to capital markets, and environmental risks including those related to climate change.
  • 6Entergy actively manages risks associated with its operations, including fuel and purchased power cost recovery mechanisms and storm restoration cost recovery.

Frequently Asked Questions

Entergy Corporation's primary business segment is its Utility operations, which include the generation, transmission, distribution, and sale of electric power to retail and wholesale customers in Arkansas, Louisiana, Mississippi, and Texas. They also operate a small natural gas distribution business in Louisiana.

Entergy's strategy is to operate and grow its utility business with a customer-centric approach, focusing on meeting customer needs and creating value for all stakeholders. This involves investing in customer growth, reliability, resilience, and clean energy, while maintaining affordability.

Entergy faces several key risks, including utility regulatory risks (lengthy proceedings, rate changes, cost recovery), nuclear operating risks (operations, decommissioning, regulatory compliance), business risks (access to capital markets, credit rating downgrades, reputational damage), environmental risks (climate change impacts, emission regulations), and operational risks (weather events, cybersecurity threats).

Entergy's utility operating companies recover fuel, purchased power, and associated costs through rate mechanisms that are subject to regulatory review and potential disallowances. They also utilize hedging strategies, particularly for natural gas price volatility, to stabilize electricity costs.