Entergy(ETR) - 2024 Q3 - Quarterly Report

Financial Performance - Entergy Corporation reported a significant increase in revenue, reaching $3.5 billion for the quarter, representing a 10% year-over-year growth[1]. - The company achieved a net income of$ 500 million, which is a 15% increase compared to the same quarter last year[1]. - Entergy's net income attributable to the corporation for Q3 2024 was $786.5 million, an increase from$ 751.6 million in Q3 2023, representing a growth of 4.3%[25]. - Operating revenues for Q3 2024 were $3,370 million, a decrease of 5.3% compared to$ 3,559 million in Q3 2023[32]. - Consolidated net income for the three months ended September 30, 2024, was $645,754, compared to$ 669,714 in 2023; for the nine months, net income was $774,022, down from$ 1,374,026 in 2023[137]. - Consolidated net income for 2024 was $774,022, a decrease of 43.6% compared to$ 1,374,026 in 2023[142]. - Operating income for the three months ended September 30, 2024, was $1,125,862, a slight decrease from$ 1,143,383 in 2023; for the nine months, operating income was $1,981,475, down from$ 2,361,418 in 2023[137]. Customer and Market Growth - Customer growth was noted, with an increase of 2.5% in the number of residential customers, totaling approximately 3 million[1]. - Industrial usage increased due to higher demand from large industrial customers, particularly in the petroleum refining and chlor-alkali industries[28]. - Total retail sales for 2024 were 35,747 GWh, a slight decrease of 0.1% from 35,790 GWh in 2023, with residential sales down 9% and industrial sales up 10%[34]. - Total retail sales increased by 2% to 94,353 GWh in 2024 compared to 92,538 GWh in 2023, driven by industrial demand[59]. Investment and Infrastructure - Entergy expects to invest $20 billion over the next five years to enhance its infrastructure and expand renewable energy capacity[1]. - The company is targeting a 50% reduction in carbon emissions by 2030, aligning with its commitment to achieve net-zero carbon emissions by 2050[1]. - Entergy's capital expenditures for the upcoming year are projected to be approximately$ 4 billion, primarily focused on grid modernization and renewable projects[1]. - Entergy Corporation expects to issue approximately $4.4 billion of equity through 2028, with about$ 1.4 billion already contracted under forward sale agreements as of September 30, 2024[88]. - Entergy is planning approximately $25 billion in capital investments from 2025 to 2027, focusing on generation projects, nuclear fleet investments, and transmission improvements[91]. Regulatory and Legal Challenges - Entergy is facing regulatory challenges related to rate cases, which could impact future revenue growth and cost recovery efforts[1]. - Entergy Arkansas committed to forgo recovery of costs related to the 2013 ANO stator incident, leading to a write-off of$ 78 million in Q3 2023[26]. - Entergy Arkansas recorded a regulatory liability reversal of $92 million in Q3 2024, offsetting reductions in gross revenues from retail one-time bill credits[38]. - Entergy Louisiana recorded expenses of$ 151 million in Q2 2024 related to the global stipulated settlement agreement[178]. - Entergy Mississippi's formula rate plan for 2024 reflects an earned return on rate base of 6.08%, resulting in a total revenue increase of $64.6 million[182]. Debt and Financing - Interest expense for Entergy increased by$ 23.3 million in Q3 2024 compared to the previous year, reflecting higher borrowing costs[25]. - The company paid $723,975 in dividends for common stock, an increase from$ 678,699 in 2023[145]. - Long-term debt, including securitization bonds, rose to $26,563,350 in 2024 from$ 23,008,839 in 2023[149]. - Net cash flow from financing activities increased by $528 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to long-term debt activity providing approximately$ 2,742 million in 2024 versus $221 million in 2023[122]. Operational Efficiency - Entergy plans to launch a new energy efficiency program aimed at reducing customer energy consumption by 10% over the next three years[1]. - Other operation and maintenance expenses decreased from$ 743 million in Q3 2023 to $714 million in Q3 2024, primarily due to lower power delivery and compensation costs[35]. - The effective income tax rate for Q3 2024 was 25%, compared to 25.3% in Q3 2023, primarily due to state income tax accruals[46][47]. Future Projects and Developments - Entergy Arkansas expects the Driver Solar facility, a 250 MW project, to commence commercial operation by the end of 2024, with a substantial completion payment of approximately$ 100 million expected[97]. - Entergy Louisiana's application for an alternative to the RFP process to acquire up to 3 GW of solar resources was approved by the LPSC in May 2024[98]. - Entergy Texas filed an application for the Legend Power Station (754 MW) and Lone Star Power Station (453 MW), with estimated costs of $1.46 billion and$ 735.3 million respectively, both expected to be in service by mid-2028[105]. Miscellaneous - The Board declared a dividend of $1.20 per share at its October 2024 meeting[114]. - The company expects to receive$ 127 million from the U.S. Treasury related to the Vermont Yankee damages case in the fourth quarter of 2024[158]. - The balance of retained earnings as of September 30, 2024, was $11.985 billion, compared to$ 11.192 billion as of September 30, 2023, indicating an increase of approximately 7.1%[153][155].