Entergy(US:ETR)2023-08-02 21:05Financial Data and Key Metrics Changes - The company reported second quarter adjusted earnings per share of $1.84, which is $0.06 higher than the previous year, maintaining a long-term growth outlook of 6% to 8% [12][41] - Operating cash flow increased by $588 million compared to last year, primarily due to lower payments for fuel and purchase power as natural gas prices were much higher last year [35] Business Line Data and Key Metrics Changes - Excluding weather effects, retail sales growth for the quarter was down 0.9%, with residential segment growth slightly positive due to customer growth, offset by lower usage per customer [34] - Industrial sales declined overall, primarily due to lower sales to Cogent customers, but adjusted for Cogent, industrial sales were up about 1% [25][34] Market Data and Key Metrics Changes - Sales to small industrial customers grew nearly 90 gigawatt hours over last year, while sales to large, new, and expanding industrial customers grew nearly 100 gigawatt hours [26] - The company plans to add nearly 6,000 megawatts of renewable capacity through 2026, with 2,400 megawatts currently in various stages of development [27] Company Strategy and Development Direction - The company is focused on resilience and reliability investments while expanding its clean energy footprint to meet customer demands and attract new customers [22][6] - Entergy Texas expects to file a resilience plan following the Texas Resiliency Act, which allows utilities to submit plans to improve customer outcomes [18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving steady, predictable earnings and dividend growth, affirming guidance and long-term outlook [41][46] - The company noted that while there has been some weakness in national industrial output indicators, strength is still observed in the Gulf region [25] Other Important Information - The company received recognition from Forbes Magazine as one of America's best employers for diversity, highlighting its commitment to a diverse and inclusive workplace [32] - Entergy's net liquidity remained strong at $4.7 billion, which includes $411 million of storm escrows [44] Q&A Session Summary Question: What is the relationship with the LPSC following recent changes? - Management indicated that they have a collaborative relationship with the new commission and are focused on ensuring positive customer outcomes [48][56] Question: How does the Louisiana resiliency process unfold? - Management expects to align the resiliency filing with the rate case and is awaiting feedback from the LPSC staff [52][56] Question: What is the trajectory of FFO to debt? - Management is optimistic about achieving the 14% FFO to debt metric by year-end, with plans in place to manage debt levels effectively [64][66] Question: How is the company addressing regulatory changes in Texas? - Management noted that recent legislation provides a better path for recovery of investments and supports the company's overall outlook [73][74] Question: What is the outlook for industrial sales growth? - Management expects a robust industrial sales pipeline, particularly around clean energy projects, with some large projects shifting in-service dates from 2024 to 2025 [69][87]