Summary
Entergy Corporation's (ETR) Q3 2021 filing for Entergy Arkansas, LLC and Subsidiaries reveals a net income increase of $19 million for the third quarter compared to the same period in 2020, driven by higher sales volume/weather and increased retail electric prices. For the nine months ended September 30, 2021, net income saw a rise of $63.9 million, also attributed to higher volume/weather and a regulatory liability reversal, despite increased depreciation, amortization, and other operating expenses. Significant events impacting operations include the aftermath of Winter Storm Uri, which led to substantially higher fuel and purchased power costs for Entergy Arkansas ($145 million in Feb 2021 vs. $40 million in Feb 2020). The company is also navigating regulatory investigations into preparation and response to the storm, and potential price gouging by suppliers. Looking ahead, Entergy Arkansas anticipates significant capital investments of approximately $2.6 billion between 2022 and 2024, focusing on modernization, decarbonization, and diversification of its energy portfolio.
Financial Highlights
45 data points| Revenue | $3.35B |
| Operating Expenses | $2.53B |
| Operating Income | $827.87M |
| Interest Expense | $216.61M |
| Net Income | $535.58M |
| EPS (Basic) | $1.32 |
| EPS (Diluted) | $1.31 |
| Shares Outstanding (Basic) | 401.93M |
| Shares Outstanding (Diluted) | 404.01M |
Key Highlights
- 1Entergy Arkansas reported a net income increase of $19 million for Q3 2021 compared to Q3 2020, driven by higher volume/weather and increased retail electric prices.
- 2For the first nine months of 2021, net income increased by $63.9 million due to higher volume/weather and a favorable regulatory adjustment, partially offset by increased expenses.
- 3Winter Storm Uri significantly impacted fuel and purchased power costs for Entergy Arkansas, increasing them to $145 million in February 2021 from $40 million in February 2020.
- 4Entergy Arkansas is subject to regulatory investigations regarding its preparedness and response to Winter Storm Uri, including potential price gouging by fuel suppliers.
- 5The company plans to invest approximately $2.6 billion in capital projects between 2022 and 2024, focusing on modernizing, decarbonizing, and diversifying its energy generation portfolio.
- 6Operating revenues for Entergy Arkansas increased to $722.7 million in Q3 2021 from $644.4 million in Q3 2020, driven by a 7% increase in billed electricity usage and higher retail electric prices.
- 7The debt-to-capital ratio for Entergy Arkansas decreased from 54.8% at December 31, 2020, to 52.8% at September 30, 2021, primarily due to an increase in equity from net income.