Entergy Corporation Q2 FY2025 earnings call

• Customer service: Achieved first quartile Net Promoter Score for utility residential service, strong industrial growth opportunities, secured new growth in Arkansas with 13% 4-year industrial sales growth rate.
• Capital plan: Updating 4-year capital plan to $40B, including $3B increase, with significant investments in generation (3GW solar, 1.4GW battery storage, 8GW gas units), and secured 15GW of turbines for projects.
• Sale of gas LDC: Completed sale of gas LDC businesses to Delta Utilities, enabling focus on core electric business.
• Nuclear operations: Waterford 3 and Grand Gulf celebrated 40 years, Waterford 3 refueling outage completed on time and budget, planned turbine rod replacements in ANO 1.
• Regulatory progress: Progress on matters like Meta data center investment, formula rate plan settlements, legislative changes in Texas and Arkansas supporting storm recovery and economic development.
• Storm management: Executing Phase 1 of accelerated resilience program with over $2B approved, grid hardening, regulatory changes to expedite storm securitization.

Adjusted earnings per share for the second quarter were $1.05. Retail sales volume was positively impacted, with weather-adjusted retail sales growth at 4.5% for the quarter, driven by industrial sales growth of close to 12% from new and expanding customers. The sale of gas LDC businesses allowed focus on core electric business. Nuclear operations at Waterford 3 and Grand Gulf celebrated 40 years, with Waterford 3 refueling outage completed on time and budget.

• Affirmed 2025 adjusted EPS guidance, firmly on track.
• Updated 4-year capital plan to $40B, including new renewables and battery storage.
• Longer-term outlook: Increased 2027 adjusted EPS by $0.05 and 2028 by $0.10, maintaining strong credit metrics.
• Tax credits: Adjusted cash flow forecast for renewable tax credits, monetizing nuclear PTCs with $570M recorded in Q2.

• Storms impacting grid resilience.
• Supply chain issues affecting gas plant construction.
• Regulatory uncertainties in approval processes for large projects like Meta data center and new nuclear builds.

Q: Jeremy Tonet asked about color on Arkansas customer industry and post-2028 sales ramp.

A: Drew Marsh said they can't comment on specific customers but filings in 2-3 weeks will have details.

Q: Nicholas Campanella asked about Meta Hyperion upsizing regulatory process.

A: Drew Marsh said no process started, can't comment on Meta's plans.

Q: Julien Dumoulin-Smith asked about gas generation opportunities.

A: Drew Marsh explained 7GW of gas generation available for new load, with 4 COD between 2029-2031.

Q: Bill Appicelli asked about equity needs and Arkansas tariff structure.

A: Kimberly Fontan said equity needs unchanged, Arkansas infrastructure rider provides timely recovery for large transmission/generation.

Q: David Arcaro asked about operating cash flow outlook drivers.

A: Kimberly Fontan said primary drivers are riders and nuclear PTC monetization.

Q: Ross Fowler asked about MISO MTEP process.

A: Drew Marsh said next submittal in fall.

Q: Steve Fleishman asked about storm recovery in Louisiana and rating agencies.

A: Drew Marsh and Kimberly Fontan discussed faster storm securitization and positive rating agency view.

Q: Steven Fleishman asked about gas plant EPC and timelines.

A: Drew Marsh discussed strong EPC relationships, standardized designs, and supply chain management.

Q: Angie Storozynski asked about residential sales and gas plant costs.

A: Kimberly Fontan said residential sales volatility, and managing gas plant costs through continuous improvement.

Q: Paul Patterson asked about executive order and safe harboring.

A: Kimberly Fontan said engaged with industry but no specific insights on executive order.