10-QPeriod: Q1 FY2019

ENTERGY CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 3, 2019For Securities:ETR

Summary

Entergy Corporation's Q1 2019 filing indicates a mixed financial performance across its operating subsidiaries. Entergy Arkansas, LLC saw a slight increase in net income driven by lower nuclear refueling outage expenses and higher net revenue, despite increased interest expenses. Entergy Louisiana, LLC experienced a notable increase in net income, primarily due to higher net revenue and lower operating expenses. Conversely, Entergy Mississippi, LLC reported a decrease in net income, mainly attributed to lower net revenue. Entergy New Orleans, LLC's net income declined due to higher operating expenses and a higher effective tax rate. The company's liquidity appears stable across its subsidiaries, with varying cash flow generation from operating, investing, and financing activities. Significant capital expenditures are noted for projects like the Montgomery County Power Station (Entergy Texas) and the Searcy Solar Facility (Entergy Arkansas). Regulatory matters, including rate case filings and fuel cost recovery adjustments, continue to be a key focus for the subsidiaries, with ongoing discussions and filings impacting future revenue streams. System Energy Resources, Inc., which primarily serves Entergy's operating companies, reported an increase in net income due to rate base changes and a lower effective tax rate, with ongoing regulatory proceedings concerning its return on equity and capital structure.

Financial Highlights

42 data points
Beta

Revenue

$2.61B

Net Income

$258.65M

9.9% Net Margin

EPS (Diluted)

$0.66

Total Assets

$49.61B

Cash & Equivalents

$983.50M

Free Cash Flow

$501.19M

Financial Statements
Beta
Revenue$2.61B
Operating Expenses$2.33B
Operating Income$283.25M
Interest Expense$200.99M
Net Income$258.65M
EPS (Basic)$0.67
EPS (Diluted)$0.66
Shares Outstanding (Basic)379.15M
Shares Outstanding (Diluted)384.47M

Key Highlights

  • 1Entergy Arkansas reported a net income increase of $2.9 million, driven by lower nuclear refueling outage expenses and higher net revenue.
  • 2Entergy Louisiana saw a significant increase in net income ($16 million) due to higher net revenue and reduced operating expenses.
  • 3Entergy Mississippi experienced a net income decrease of $7.4 million, primarily due to lower net revenue.
  • 4Entergy New Orleans' net income decreased by $1.9 million, impacted by higher operating expenses and a less favorable tax rate.
  • 5Entergy Texas' net income increased by $4 million, benefiting from higher net revenue and other income, despite increased operating and depreciation expenses.
  • 6System Energy Resources, Inc. reported a $1.3 million increase in net income driven by rate base changes and a lower effective tax rate.
  • 7The company is making strategic investments in renewable energy, with Entergy Arkansas announcing plans for a new solar energy facility.

Frequently Asked Questions

Entergy Arkansas' net income increased due to lower nuclear refueling outage expenses and higher net revenue. Entergy Louisiana benefited from higher net revenue and lower operating expenses. Entergy Mississippi's net income decreased due to lower net revenue. Entergy New Orleans saw a decline in net income from higher operating expenses and a higher effective tax rate. Entergy Texas' net income rose due to higher net revenue and other income. System Energy Resources' net income increased due to rate base changes and a lower tax rate.

Yes, Entergy Arkansas announced an agreement to purchase an approximately 100 MW solar energy facility. Entergy Texas is increasing spending on the Montgomery County Power Station project, and Entergy New Orleans is increasing spending on the New Orleans Power Station and New Orleans Solar projects.

Key regulatory matters include Entergy Arkansas' formula rate plan filing and energy cost recovery rider adjustments, Entergy Louisiana's fuel adjustment clause audit and related refund recommendations, Entergy Mississippi's formula rate plan filings and a pending attorney general complaint, and Entergy Texas' base rate case expenses and cost recovery factor filings. System Energy Resources is involved in significant regulatory proceedings concerning its return on equity and capital structure, as well as a complaint related to its Grand Gulf sale-leaseback renewal.

The filing indicates stable liquidity across subsidiaries, with varied cash flow from operating, investing, and financing activities. Subsidiaries are utilizing credit facilities and engaging in money pool activities for short-term funding needs. Entergy Texas issued significant amounts of mortgage bonds, while Entergy Louisiana also saw substantial debt issuance and retirement. System Energy Resources engaged in debt refinancing for pollution control revenue refunding bonds.