(Entergy, 16.Feb.2023) — Entergy Corporation (NYSE: ETR) reported fourth quarter 2022 earnings per share of 51 cents on an as-reported and adjusted basis (non-GAAP). For the full year, the company reported 2022 earnings per share of $5.37 on an as-reported basis and $6.42 on an adjusted basis.
“We finished 2022 strong and delivered meaningful outcomes for our key stakeholders,” said Drew Marsh, Entergy chairman and chief executive officer. “We have laid out a clear path that will deliver exceptional customer value including clean energy and resilience.”
Business highlights included the following:
- The PUCT approved E-TX’s request to construct Orange County Advanced Power Station.
- E-LA filed its Entergy Future Ready resilience plan with the LPSC seeking approval for the first five years of the ten-year accelerated resilience and hardening plan.
- The LPSC approved E-LA’s Hurricane Ida storm recovery and securitization financing.
- E-AR and the U.S. General Services Administration signed the federal government’s first MOU with a utility to provide regionally-sourced nuclear and renewable energy.
- River Bend Station began its 22nd refueling outage after a 675-day continuous run, the longest in the plant’s history.
- The APSC approved E-AR’s annual FRP.
- EEI awarded Entergy its Emergency Response Award for its mutual assistance efforts in supporting Hurricane Ian restoration.
- Entergy was named to a Dow Jones Sustainability Index for the 21st consecutive year.
- Newsweek named Entergy as one of America’s most responsible companies and one of America’s greatest workplaces for diversity.
| Consolidated earnings (GAAP and non-GAAP measures) | ||||||
| Fourth quarter and full year 2022 vs. 2021 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
| Fourth quarter | Full year | |||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| (After-tax, $ in millions) | ||||||
| As-reported earnings | 106 | 259 | (152) | 1,103 | 1,118 | (15) |
| Less adjustments | (1) | 104 | (105) | (217) | (97) | (120) |
| Adjusted earnings (non-GAAP) | 107 | 155 | (48) | 1,320 | 1,215 | 105 |
| Estimated weather impact | (1) | (21) | 20 | 86 | (21) | 107 |
| (After-tax, per share in $) | ||||||
| As-reported earnings | 0.51 | 1.28 | (0.77) | 5.37 | 5.54 | (0.17) |
| Less adjustments | – | 0.52 | (0.52) | (1.05) | (0.48) | (0.57) |
| Adjusted earnings (non-GAAP) | 0.51 | 0.76 | (0.25) | 6.42 | 6.02 | 0.40 |
| Estimated weather impact | – | (0.10) | 0.10 | 0.42 | (0.11) | 0.53 |
| Calculations may differ due to rounding |
Consolidated results
For fourth quarter 2022, the company reported earnings of $106 million, or 51 cents per share, on an as-reported basis, and earnings of $107 million, or 51 cents per share, on an adjusted basis. This compared to fourth quarter 2021 earnings of $259 million, or $1.28 per share, on an as-reported basis, and earnings of $155 million, or 76 cents per share, on an adjusted basis.
For full year 2022, the company reported earnings of $1,103 million, or $5.37 per share, on an as-reported basis, and earnings of $1,320 million, or $6.42 per share, on an adjusted basis. This compared to 2021 earnings of $1,118 million, or $5.54 per share, on an as-reported basis, and earnings of $1,215 million, or $6.02 per share, on an adjusted basis.
Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly and full year variances by business is provided in Appendix B.
Business segment results
Utility
For full year 2022, the Utility business reported earnings attributable to Entergy Corporation of $1,407 million, or $6.84 per share, on an as-reported basis, and earnings of $1,686 million, or $8.20 per share, on an adjusted basis. This compared to full year 2021 earnings of $1,490 million, or $7.38 per share, on an as-reported basis, and earnings of $1,464 million, or $7.25 per share, on an adjusted basis. There were several drivers for the year’s results.
2022 results include a regulatory charge of $(551 million) ($(413 million) after tax) that SERI recorded to increase a regulatory liability to reflect the effects of a partial settlement agreement and offer of settlement related to pending proceedings before the FERC (this item was considered an adjustment and excluded from adjusted earnings).
Also in 2022, as a result of receiving approvals for storm cost recovery and issuance of securitized debt at E-LA and E-TX, the companies recorded the following:
- carrying costs on storm expenditures not previously recorded (the equity portion of carrying costs related to prior years was considered an adjustment and excluded from adjusted earnings),
- a reduction in other income to account for LURC’s 1 percent beneficial interest in the trust established as part of E-LA’s securitization (considered an adjustment and excluded from adjusted earnings),
- a reduction in income tax expense as a result of securitization (considered an adjustment and excluded from adjusted earnings), and
- amounts reserved to share benefits of securitization with customers (considered an adjustment and excluded from adjusted earnings).
Other drivers for the year included:
- the net effect of regulatory actions across the operating companies;
- higher retail sales volume including the impacts of weather;
- various regulatory provisions;
- higher operating expenses including other O&M, depreciation expense, and taxes other than income taxes;
- higher income from intercompany preferred investments (offset at P&O and largely earnings neutral for the consolidated result);
- higher interest expense; and
- higher effective income tax rate.
On a per share basis, 2022 results reflected higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For full year 2022, Parent & Other reported a loss attributable to Entergy Corporation of $(366 million), or $(1.78) per share, on an as-reported and an adjusted basis. This compared to a full year 2021 loss of $(249 million), or $(1.23) per share, on an as-reported basis, and a loss of $(248 million), or $(1.23) per share, on an adjusted basis.
Drivers for the full year included higher interest on intercompany preferred investments (offset at Utility and largely earnings neutral for the consolidated result), an increase in charitable contributions, and higher interest expense.
On a per share basis, 2022 results reflected higher diluted average number of common shares outstanding.
Entergy Wholesale Commodities
For full year 2022, EWC reported earnings attributable to Entergy Corporation of $63 million, or 31 cents per share, on an as-reported basis. This compared to full year 2021 loss attributable to Entergy Corporation of $(123 million), or (61) cents per share, on an as-reported basis. The primary drivers for the year were due to the shutdown and sale of EWC’s nuclear plants.
Specific variances included lower asset write-offs and impairments, and lower operating expenses including other O&M, decommissioning expense, depreciation expense, and nuclear refueling outage expense. These drivers were partially offset by lower revenue, lower earnings on NDTs, and income tax items.
Appendix D contains additional details on EWC operating and financial measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per share guidance
Entergy initiated its 2023 adjusted EPS guidance range of $6.55 to $6.85. See webcast presentation for additional details.
The company has provided 2023 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP financial measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax positions.
Earnings teleconference
A teleconference will be held at 10:00 a.m. Central Time on Thursday, February 16, 2023, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference and a replay of the teleconference may be accessed by visiting Entergy’s website at www.entergy.com. For participants who would like to participate via telephone, please register at https://register.vevent.com/register/BI859dfe14dbd944c695a4ea640f532291 to receive the dial-in number along with a unique PIN that is required to access the call (the registration link can also be found on Entergy’s website). The webcast presentation is also being posted to Entergy’s website concurrent with this news release.
Entergy Corporation, a Fortune 500 company headquartered in New Orleans, powers life for 3 million customers through its operating companies across Arkansas, Louisiana, Mississippi, and Texas. Entergy is creating a cleaner, more resilient energy future for everyone with our diverse power generation portfolio, including increasingly carbon-free energy sources. With roots in the Gulf South region for more than a century, Entergy is a recognized leader in corporate citizenship, delivering more than $100 million in economic benefits to local communities through philanthropy and advocacy efforts annually over the last several years. Our approximately 12,000 employees are dedicated to powering life today and for future generations.
Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR”.
Details regarding Entergy’s results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investors.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
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