Entergy Reports First Quarter Earnings

Company affirms guidance and financial outlooks

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May 11, 2020, 06:30 ET

NEW ORLEANS, May 11, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2020 earnings of 59 cents per share on an as-reported basis and $1.14 per share on an adjusted basis (non-GAAP).

"The past few months have presented extraordinary circumstances, and we extend our well-wishes to all affected. We also extend our deepest thanks to everyone working tirelessly to help those in need," said Entergy Chairman and Chief Executive Officer Leo Denault. "Providing safe, reliable power is essential, especially during times like these; that's why at Entergy we plan and prepare for the extraordinary, and our response has been effective. We are meeting the needs and expectations of our customers and communities, our major projects remain on track, and our capital plan is unchanged. Our first quarter results were solid, and recent events have not changed our objective to be the premier utility that delivers sustainable value for our stakeholders."

Business highlights included the following:

Entergy affirms 2020 adjusted EPS guidance of $5.45 to $5.75.
The Lake Charles Power Station was placed in service on budget and ahead of schedule.
Entergy Texas issued an RFP for a 1,000MW to 1,200MW CCGT and Entergy Louisiana issued an RFP for 250MW of solar resources.
Entergy Mississippi received approval for the Sunflower Solar project and Entergy Arkansas received approval for the Searcy Solar project.
Entergy Mississippi made its annual formula rate plan filing.
Entergy Texas filed for an increase in its distribution cost recovery factor.
Indian Point Unit 2 was permanently shutdown.
The Entergy Charitable Foundation established the COVID-19 Emergency Relief Fund.

Consolidated Earnings (GAAP and Non-GAAP Measures)
First Quarter 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
	First Quarter
	2020	2019	Change
(After-tax, $ in millions)
As-reported earnings	119	255	(136)
Less adjustments	(111)	97	(208)
Adjusted earnings (non-GAAP)	230	158	72
Estimated weather in billed sales	(50)	(23)	(26)

(After-tax, per share in $)
As-reported earnings	0.59	1.32	(0.73)
Less adjustments	(0.55)	0.50	(1.05)
Adjusted earnings (non-GAAP)	1.14	0.82	0.32
Estimated weather in billed sales	(0.25)	(0.12)	(0.13)

Calculations may differ due to rounding

Consolidated Results

For first quarter 2020, the company reported earnings of $119 million, or 59 cents per share, on an as-reported basis, and earnings of $230 million, or $1.14 per share, on an adjusted basis. This compared to first quarter 2019 earnings of $255 million, or $1.32 per share, on an as-reported basis, and earnings of $158 million, or 82 cents per share, on an adjusted basis.

Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly variances by business is provided in Appendix B.

Business Segment Results

Utility

For first quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $320 million, or $1.59 per share, on both an as-reported and an adjusted basis. This compared to first quarter 2019 earnings of $231 million, or $1.20 per share, on both an as-reported basis and an adjusted basis. Drivers for the quarter included:

rate activity at E-AR, E-LA, E-MS, and E-TX;
a first quarter 2019 reserve at E-AR;
higher nuclear insurance refunds, as well as lower fossil and nuclear generation spending;
a favorable book-to-tax permanent difference related to stock-based compensation; and
an IRS settlement related to Hurricane Isaac Act 55 financing, net of customer sharing (largely offset by higher tax expense from this settlement at P&O).

These drivers were partially offset by:

higher pension and benefits expenses;
higher depreciation and interest expenses; and
lower sales volume, including the net effect of billed and unbilled sales, and the effects of weather.

On a per share basis, first quarter 2020 results reflected higher common shares outstanding.

Appendix C contains additional details on Utility financial and operating measures.

Parent & Other

For first quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(90 million), or (45) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(73 million), or (38) cents per share, on both an as-reported and an adjusted basis in first quarter 2019. The main driver for the quarter was higher income tax expense resulting from the IRS settlement related to Hurricane Isaac Act 55 financing, which largely offsets the benefit from this settlement at the Utility.

On a per share basis, first quarter 2020 results reflected higher common shares outstanding.

Entergy Wholesale Commodities

For first quarter 2020, EWC reported a loss attributable to Entergy Corporation of $(111 million), or (55) cents per share, on an as-reported basis. This compared to first quarter 2019 earnings attributable to Entergy Corporation of $97 million, or 50 cents per share, on an as-reported basis. Drivers for the quarter included:

losses on decommissioning trust funds; and
lower revenue due to the shutdown of Pilgrim, as well as lower nuclear pricing.

These drivers were partially offset by:

lower impairments as compared to a year ago;
lower other O&M expense due to the shutdown of Pilgrim, as well as lower severance and retention expense;
higher nuclear volume; and
an income tax item related to the sale of Vermont Yankee recorded in first quarter 2019.

On a per share basis, first quarter 2020 results reflected higher common shares outstanding.

Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.

Earnings per Share Guidance

Entergy affirmed its 2020 adjusted EPS guidance range of $5.45 to $5.75. See webcast presentation slides for additional details.

The company has provided 2020 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. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(1.25) in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Monday, May 11, 2020, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 5242577, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through May 18, 2020, by dialing 855-859-2056, conference ID 5242577.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.

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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of 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.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrow balances; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and an as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements

In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected, and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers.

First Quarter 2020 Earnings Release Appendices and Financial Statements

Appendices
Appendices are presented in this section as follows:

A: Consolidated Results and Adjustments
B: Earnings Variance Analysis
C: Utility Financial and Operating Measures
D: EWC Financial and Operating Measures
E: Consolidated Financial Measures
F: Definitions and Abbreviations and Acronyms
G: Other GAAP to Non-GAAP Reconciliations

Financial Statements
Financial statements are presented in this section.

A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures First Quarter 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)
	First Quarter
	2020	2019	Change
(After-tax, $ in millions)
Earnings (loss)
Utility	320	231	89
Parent & Other	(90)	(73)	(18)
EWC	(111)	97	(208)
Consolidated	119	255	(136)

Less adjustments
Utility	-	-	-
Parent & Other	-	-	-
EWC	(111)	97	(208)
Consolidated	(111)	97	(208)

Adjusted earnings (loss) (non-GAAP)
Utility	320	231	89
Parent & Other	(90)	(73)	(18)
EWC	-	-	-
Consolidated	230	158	72
Estimated weather in billed sales	(50)	(23)	(26)

Diluted average number of common shares outstanding (in millions)	201	192

(After-tax, per share in $) (a)
Earnings (loss)
Utility	1.59	1.20	0.39
Parent & Other	(0.45)	(0.38)	(0.07)
EWC	(0.55)	0.50	(1.05)
Consolidated	0.59	1.32	(0.73)

Less adjustments
Utility	-	-	-
Parent & Other	-	-	-
EWC	(0.55)	0.50	(1.05)
Consolidated	(0.55)	0.50	(1.05)

Adjusted earnings (loss) (non-GAAP)
Utility	1.59	1.20	0.39
Parent & Other	(0.45)	(0.38)	(0.07)
EWC	-	-	-
Consolidated	1.14	0.82	0.32
Estimated weather in billed sales	(0.25)	(0.12)	(0.13)

Calculations may differ due to rounding
(a)	Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

See Appendix B for detailed earnings variance analysis.

Appendix A-2 provides a comparative summary of OCF, by business.

Appendix A-2: Consolidated Operating Cash Flow
First Quarter 2020 vs. 2019
($ in millions)
	First Quarter
	2020	2019	Change
Utility	603	455	148
Parent & Other	(81)	(78)	(3)
EWC	137	124	13
Consolidated	659	501	158

Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to higher collections for fuel and purchased power cost recovery, a lower amount of unprotected excess ADIT returned to customers, higher nuclear insurance refunds, and lower nuclear refueling outage spending at EWC. Unfavorable weather and higher pension contributions partially offset the increase. Intercompany income tax payments also contributed to the line of business variances.

Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and an EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS)
First Quarter 2020 vs. 2019
	First Quarter
	2020	2019	Change
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
EWC
Income before income taxes	(141)	163	(304)
Income taxes	(31)	66	(96)
Preferred dividend requirements	1	1	-
Total EWC	(111)	97	(208)

Total adjustments	(111)	97	(208)

(After-tax, per share in $) (b)
EWC
Total EWC	(0.55)	0.50	(1.05)

Total adjustments	(0.55)	0.50	(1.05)

Calculations may differ due to rounding
(b)	Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings)
	First Quarter 2020 vs. 2019
	(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
		First Quarter
		2020	2019	Change
	EWC
	Operating revenue	333	434	(101)
	Fuel and fuel-related expenses	(20)	(25)	5
	Purchased power	(11)	(16)	5
	Nuclear refueling outage expenses	(12)	(12)	-
	Other O&M	(131)	(189)	58
	Asset write-off and impairments	(5)	(74)	69
	Decommissioning expense	(50)	(63)	13
	Taxes other than income taxes	(20)	(13)	(7)
	Depreciation/amortization exp.	(35)	(38)	3
	Other income (deductions)–other	(184)	169	(352)
	Interest exp. and other charges	(5)	(9)	4
	Income taxes	31	(66)	96
	Preferred dividend requirements	(1)	(1)	-
	Total EWC	(111)	97	(208)

	Total adjustments (after-tax)	(111)	97	(208)

Calculations may differ due to rounding

B: Earnings Variance Analysis
Appendix B provides details of current quarter 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.

Appendix B: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
First Quarter 2020 vs. 2019
(After-tax, per share in $)
	Utility			Parent & Other			EWC		Consolidated
	As-Reported	Adjusted		As-Reported	Adjusted		As- Reported		As- Reported	Adjusted
2019 earnings	1.20	1.20		(0.38)	(0.38)		0.50		1.32	0.82
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)	0.28	0.28	(e)	-	-		(0.37)	(f)	(0.09)	0.28
Nuclear refueling outage expense	-	-		-	-		-		-	-
Other O&M	0.08	0.08	(g)	0.02	0.02		0.24	(h)	0.34	0.10
Asset write-offs and impairments	-	-		-	-		0.28	(i)	0.28	-
Decommissioning expense	(0.02)	(0.02)		-	-		0.06	(j)	0.04	(0.02)
Taxes other than income taxes	(0.02)	(0.02)		-	-		(0.03)		(0.05)	(0.02)
Depreciation/amortization exp.	(0.18)	(0.18)	(k)	-	-		0.01		(0.17)	(0.18)
Other income (deductions)–other	(0.03)	(0.03)		-	-		(1.45)	(l)	(1.48)	(0.03)
Interest exp. and other charges	(0.05)	(0.05)	(m)	0.01	0.01		0.02		(0.02)	(0.04)
Income taxes–other	0.40	0.40	(n)	(0.12)	(0.12)	(o)	0.17	(p)	0.45	0.28
Preferred dividend requirements	-	-		-	-		-		-	-
Share effect	(0.07)	(0.07)	(q)	0.02	0.02		0.02		(0.03)	(0.05)
2020 earnings	1.59	1.59		(0.45)	(0.45)		(0.55)		0.59	1.14

Calculations may differ due to rounding
(c)	Utility operating revenue / regulatory charges and Utility income taxes exclude $30 million in first quarter 2020 and $61 million in first quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings).
(d)	EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items.
(e)	The earnings increase was primarily driven by rate activity from E-AR's FRP; E-LA's FRP, including recovery of the J. Wayne Leonard Power Station (formerly St Charles Power Station); E-MS's FRP; recovery of E-MS's Choctaw Generating Station; and E-TX's TCRF and AMI rider. The variance also reflected a first quarter 2019 regulatory reserve at E-AR, as well as higher regulatory credits at E-LA for the difference between asset retirement obligation-related expenses and trust earnings plus asset retirement obligation-related costs collected in revenue. Partially offsetting was the net effect of volume/weather, as well as a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote n).
(f)	The earnings decrease was due largely to lower revenues from the shutdown of Pilgrim in May 2019, as well as lower capacity and energy prices. These were partially offset by higher energy volume at Indian Point.
(g)	The earnings increase from lower Utility other O&M was due largely to higher nuclear insurance refunds and lower fossil and nuclear generation spending. These were partially offset by higher pension and benefits expenses, as well as higher E-MS storm damage provisions (offset in operating revenue).
(h)	The earnings increase from lower EWC other O&M was due largely to the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense.
(i)	The earnings increase from lower EWC asset write-offs and impairments was due primarily to higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point.
(j)	The earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019.
(k)	The earnings decrease from higher Utility depreciation expense was due primarily to higher plant in service, including J. Wayne Leonard Power Station and Choctaw County Generating Station, as well as higher depreciation rates at E-MS.
(l)	The earnings decrease from lower EWC other income (deductions)–other was due largely to losses on the decommissioning trust fund investments in first quarter 2020 as compared to gains in first quarter 2019.
(m)	The earnings decrease from higher Utility interest expense was due primarily to higher debt balances at E-LA and E-AR.
(n)	The earnings increase from lower Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22million, $20 million greater than first quarter 2019.
(o)	The earnings decrease from higher Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote n).
(p)	The earnings increase from lower EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.
(q)	The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019).

Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis 2020 vs. 2019 ($ EPS)
	1Q
Volume/weather	(0.04)
Retail electric price	0.33
Reg. provision for E-AR FRP	0.04
Reg. liability for tax sharing	(0.10)
Other	0.05
Total	0.28

C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provide comparative summaries of Utility operating and financial measures.

Appendix C-1: Utility Operating and Financial Measures
First Quarter 2020 vs. 2019
	First Quarter
	2020	2019	% Change	% Weather Adjusted (r)
GWh billed
Residential	8,126	8,471	(4.1)	1.4
Commercial	6,244	6,423	(2.8)	(2.7)
Governmental	595	601	(1.0)	(1.5)
Industrial	11,815	11,683	1.1	1.1
Total retail sales	26,780	27,178	(1.5)	0.3
Wholesale	3,117	3,814	(18.3)
Total sales	29,897	30,992	(3.5)

Number of electric retail customers
Residential	2,504,243	2,485,256	0.8
Commercial	356,303	357,950	(0.5)
Governmental	17,724	17,814	(0.5)
Industrial	44,443	44,429	-
Total retail customers	2,922,713	2,905,449	0.6

Other O&M and refueling outage expense per MWh	$20.20	$20.12	0.4


Appendix C-2: Utility Operating Measures
Twelve Months Ended March 31, 2020 vs. 2019
	Twelve Months Ended March 31
	2020	2019	% Change	% Weather Adjusted (r)
GWh billed
Residential	35,748	36,291	(1.5)	(0.8)
Commercial	28,576	29,117	(1.9)	(2.2)
Governmental	2,573	2,574	-	(0.4)
Industrial	48,616	48,662	(0.1)	(0.1)
Total retail sales	115,513	116,644	(1.0)	(0.8)

Calculations may differ due to rounding
(r)	The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

On a weather-adjusted basis for first quarter 2020, billed retail sales increased 0.3 percent. Residential billed sales increased 1.4 percent primarily due to more days billed compared to a year ago. Commercial billed sales decreased (2.7) percent driven by the continued impact of energy efficiency as well as billing delays. Industrial billed sales volume increased 1.1 percent driven by continued growth from new/expansion customers, partially offset by lower sales to existing large customers.

D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2020 vs. 2019
($ in millions)	First Quarter
	2020	2019	Change
Net income (loss)	(110)	97	(207)
Add back: interest expense	5	9	(4)
Add back: income taxes	(31)	66	(97)
Add back: depreciation and amortization	35	38	(3)
Subtract: interest and investment income	(172)	181	(353)
Add back: decommissioning expense	50	63	(13)
Adjusted EBITDA (non-GAAP)	122	92	30

Calculations may differ due to rounding

Appendix D-2 provides a comparative summary of EWC operating and financial measures.

Appendix D-2: EWC Operational and Financial Measures
First Quarter 2020 vs. 2019
	First Quarter
	2020	2019	% Change
Owned capacity (MW) (s)	3,274	3,962	(17.4)
GWh billed	6,757	7,203	(6.2)

EWC Nuclear Fleet
Capacity factor	99%	85%	16.5
GWh billed	6,259	6,690	(6.5)
Production cost per MWh	$15.42	$20.04	(23.1)
Average energy/capacity revenue per MWh	$48.44	$57.99	(16.5)
Refueling outage days
Indian Point 3	-	21

Calculations may differ due to rounding
(s)	First quarter 2020 excludes Pilgrim (688MW), which was shut down May 31, 2019 and sold August 26, 2019.

See the appendix in the webcast slide presentation for EWC hedging and price disclosures.

E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.

Appendix E: GAAP and Non-GAAP Financial Measures
First Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)

For 12 months ending March 31	2020	2019	Change
GAAP Measures
As-reported ROIC	5.6%	5.6%	0.0%
As-reported ROE	11.5%	11.4%	0.1%

Non-GAAP Financial Measures
Adjusted ROIC	5.6%	5.5%	0.1%
Adjusted ROE	11.8%	11.5%	0.3%

As of March 31 ($ in millions, except where noted)	2020	2019	Change
GAAP Measures
Cash and cash equivalents	1,464	983	480
Available revolver capacity	3,348	3,950	(602)
Commercial paper	1,942	1,942	(1)
Total debt	21,465	19,325	2,140
Securitization debt	271	398	(127)
Debt to capital	67.2%	67.8%	(0.6%)
Off-balance sheet liabilities:
Debt of joint ventures – Entergy's share	53	59	(7)
Total off-balance sheet liabilities	53	59	(7)

Storm escrow balances	373	405	(33)

Non-GAAP Financial Measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt	66.9%	67.3%	(0.4%)
Gross liquidity	4,811	4,933	(122)
Net liquidity	2,870	2,991	(121)
Net liquidity, including storm escrow balances	3,242	3,396	(154)
Net debt to net capital, excluding securitization debt	65.3%	66.1%	(0.8%)
Parent debt to total debt, excluding securitization debt	22.2%	21.7%	0.5%
FFO to debt, excluding securitization debt	14.3%	11.1%	3.1%
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC	16.0%	15.0%	1.0%

Calculations may differ due to rounding

F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix F-1: Definitions
Utility Financial and Operating Measures
GWh billed	Total number of GWh billed to retail and wholesale customers
Other O&M and refueling outage expense per MWh	Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales
Number of electric retail customers	Average number of electric customers over the period

EWC Financial and Operating Measures
Adjusted EBITDA (non-GAAP)	Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense
Average revenue under contract per kW-month (applies to capacity contracts only)	Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Average revenue per MWh on contracted volumes	Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs
Bundled capacity and energy contracts	A contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity contracts	A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO
Capacity factor	Normalized percentage of the period that the nuclear plants generate power
Expected sold and market total revenue per MWh	Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA

Appendix F-1: Definitions (continued)
EWC Financial and Operating Measures (continued)
GWh billed	Total number of GWh billed to customers and financially-settled instruments
Owned capacity (MW)	Installed capacity owned by EWC
Percent of capacity sold forward	Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Percent of planned generation under contract	Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts, or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract
Planned net MW in operation	Amount of installed capacity to generate power and/or sell capacity, reflecting the shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022)
Planned TWh of generation	Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, reflecting the shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022)
Production cost per MWh	Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
Refueling outage days	Number of days lost for a scheduled refueling and maintenance outage during the period
Unit-contingent	Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee

Financial Measures – GAAP
As-reported ROE	12-months rolling net income attributable to Entergy Corporation divided by average common equity
As-reported ROIC	12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Debt of joint ventures – Entergy's share	Entergy's share of debt issued by business joint ventures at EWC
Debt to capital	Total debt divided by total capitalization
Leases – Entergy's share	Operating leases held by subsidiaries capitalized at implicit interest rate
Available revolver capacity	Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt	Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debt	Sum of short-term and long-term debt, notes payable and commercial paper, and capital leases on the balance sheet

Appendix F-1: Definitions (continued)
Financial Measures - Non-GAAP
Adjusted EPS	As-reported EPS excluding adjustments
Adjusted ROE	12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity
Adjusted ROIC	12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Adjustments	Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items
Debt to capital, excluding securitization debt	Total debt divided by total capitalization, excluding securitization debt
FFO	OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, and other working capital accounts), and securitization regulatory charges
FFO to debt, excluding securitization debt	12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC	12-months rolling adjusted FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt
Gross liquidity	Sum of cash and available revolver capacity
Net debt to net capital, excluding securitization debt	Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net liquidity	Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrow reserves	Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
Parent debt to total debt, excluding securitization debt	End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt

Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.

Appendix F-2: Abbreviations and Acronyms
ADIT	Accumulated deferred income taxes	ISO	Independent system operator
AFUDC – borrowed funds	Allowance for borrowed funds used during construction	LCPS	Lake Charles Power Station (CCGT)
ALJ	Administrative law judge	LPSC	Louisiana Public Service Commission
AMI	Advanced metering infrastructure	LTM	Last twelve months
ANO	Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)	MCPS	Montgomery County Power Station (CCGT)
APSC	Arkansas Public Service Commission	MISO	Midcontinent Independent System Operator, Inc.
ARO	Asset retirement obligation	Moody's	Moody's Investor Service
bps	Basis points	MPSC	Mississippi Public Service Commission
CCGT	Combined cycle gas turbine	MTEP	MISO Transmission Expansion Plan
CCN	Certificate of convenience and necessity	Nelson 6	Unit 6 of Roy S. Nelson plant (coal)
CCNO	Council of the City of New Orleans	NDT	Nuclear decommissioning trust
Choctaw	Choctaw County Generating Station (CCGT)	NOPS	New Orleans Power Station
COD	Commercial operation date	NRC	U.S. Nuclear Regulatory Commission
CT	Simple cycle combustion turbine	NY PSC	New York Public Service Commission
CWIP	Construction work in progress	NYISO	New York Independent System Operator, Inc.
DCRF	Distribution cost recovery factor	NYSE	New York Stock Exchange
DOE	U.S. Department of Energy	OCF	Net cash flow provided by operating activities
E-AR	Entergy Arkansas, LLC	OpCo	Utility operating company
E-LA	Entergy Louisiana, LLC	OPEB	Other post-employment benefits
E-MS	Entergy Mississippi, LLC	Other O&M	Other non-fuel operation and maintenance expense
E-NO	Entergy New Orleans, LLC	P&O	Parent & Other
E-TX	Entergy Texas, Inc.	Palisades	Palisades Power Plant (nuclear)
EBITDA	Earnings before interest, income taxes, and depreciation and amortization	Pilgrim	Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019)
ENP	Entergy Nuclear Palisades, LLC	PMR	Performance Management Rider
EPS	Earnings per share	PPA	Power purchase agreement or purchased power agreement
ETR	Entergy Corporation	PSC	Public service commission
EWC	Entergy Wholesale Commodities	PUCT	Public Utility Commission of Texas
FERC	Federal Energy Regulatory Commission	RICE	Reciprocating internal combustion engine
FFO	Funds from operations	RFP	Request for proposals
FRP	Formula rate plan	ROE	Return on equity
GAAP	U.S. generally accepted accounting principles	ROIC	Return on invested capital
Grand Gulf or GGNS	Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI	RS Cogen	RS Cogen facility (CCGT cogeneration)
IIRR-G	Infrastructure investment recovery rider - gas	RSP	Rate Stabilization Plan (E-LA Gas)
Indian Point 1	Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)	S&P	Standard & Poor's
Indian Point 2 or IP2	Indian Point Energy Center Unit 2 (nuclear) (shut down 4/30/20)	SEC	U.S. Securities and Exchange Commission
Indian Point 3 or IP3	Indian Point Energy Center Unit 3 (nuclear)	SERI	System Energy Resources, Inc.
IPEC	Indian Point Energy Center (nuclear)	TCRF	Transmission cost recovery factor
ISES 2	Unit 2 of Independence Steam Electric Station (coal)	UPSA	Unit Power Sales Agreement
IRS	Internal Revenue Service	Vermont Yankee	Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)
		WACC	Weighted-average cost of capital
		WPEC	Washington Parish Energy Center

G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
($ in millions except where noted)		First Quarter
		2020	2019
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months	(A)	1,105	970
Preferred dividends		17	15
Tax-effected interest expense		559	539
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense	(B)	1,681	1,524

Adjustments in prior three quarters		80	(103)
Adjustments in current quarter		(111)	97
Total adjustments, last 12 months	(C)	(31)	(6)
EWC preferred dividends and tax-effected interest expense, rolling 12 months		22	30

Total adjustments, adding back EWC preferred dividends and tax-effected interest expense (non-GAAP)	(D)	(9)	24

Adjusted earnings, rolling 12 months (non-GAAP)	(A-C)	1,136	976
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP)	(B-D)	1,690	1,501

Average invested capital	(E)	30,229	27,184

Average common equity	(F)	9,597	8,473

As-reported ROIC	(B/E)	5.6%	5.6%
Adjusted ROIC (non-GAAP)	[(B-D)/E]	5.6%	5.5%
As-reported ROE	(A/F)	11.5%	11.4%
Adjusted ROE (non-GAAP)	[(A-C)/F]	11.8%	11.5%

Calculations may differ due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrow balances
($ in millions except where noted)		First Quarter
		2020	2019
Total debt	(A)	21,465	19,325
Less securitization debt	(B)	271	398
Total debt, excluding securitization debt	(C)	21,193	18,927
Less cash and cash equivalents	(D)	1,464	983
Net debt, excluding securitization debt	(E)	19,730	17,944

Commercial paper	(F)	1,942	1,942

Total capitalization	(G)	31,943	28,515
Less securitization debt	(B)	271	398
Total capitalization, excluding securitization debt	(H)	31,672	28,117
Less cash and cash equivalents	(D)	1,464	983
Net capital, excluding securitization debt	(I)	30,208	27,134

Debt to capital	(A/G)	67.2%	67.8%
Debt to capital, excluding securitization debt (non-GAAP)	(C/H)	66.9%	67.3%
Net debt to net capital, excluding securitization debt (non-GAAP)	(E/I)	65.3%	66.1%

Available revolver capacity	(J)	3,348	3,950

Storm escrow balances	(K)	373	405

Gross liquidity (non-GAAP)	(D+J)	4,811	4,933
Net liquidity (non-GAAP)	(D+J-F)	2,870	2,991
Net liquidity, including storm escrow balances (non-GAAP)	(D+J-F+K)	3,242	3,396

Entergy Corporation notes:
Due September 2020		450	450
Due July 2022		650	650
Due September 2026		750	750
Total parent long-term debt	(L)	1,850	1,850
Revolver draw	(M)	922	320
Unamortized debt issuance costs and discounts	(N)	(8)	(9)
Total parent debt	(F+L+M+N)	4,706	4,103

Parent debt to total debt, excluding securitization debt (non-GAAP)	[(F+L+M+N)/C]	22.2%	21.7%

Calculations may differ due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
($ in millions except where noted)		First Quarter
		2020	2019
Total debt	(A)	21,465	19,325
Less securitization debt	(B)	271	398
Total debt, excluding securitization debt	(C)	21,193	18,927

Net cash flow provided by operating activities, rolling 12 months	(D)	2,974	2,329

AFUDC – borrowed funds, rolling 12 months	(E)	(63)	(65)

Working capital items in net cash flow provided by operating activities (rolling 12 months):
Receivables		(71)	7
Fuel inventory		(39)	58
Accounts payable		(136)	103
Taxes accrued		(21)	51
Interest accrued		17	(5)
Other working capital accounts		17	(178)
Securitization regulatory charges		122	121
Total	(F)	(111)	157

FFO, rolling 12 months (non-GAAP)	(G)=(D+E-F)	3,023	2,107

FFO to debt, excluding securitization debt (non-GAAP)	(G/C)	14.3%	11.1%

Estimated return of unprotected excess ADIT (rolling 12 months pre-tax)	(H)	236	692
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax)	(I)	141	43

FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP)	[(G+H+I)/(C)]	16.0%	15.0%