Entergy Corporation (ETR) Bundle
A Brief History of Entergy Corporation
Founding and Early Years
Entergy Corporation was founded in 1913, originally as the Louisiana Power and Light Company. Over the decades, it expanded through a series of mergers and acquisitions, significantly increasing its service area and customer base.
Significant Milestones
- In 1989, Entergy was formed as a holding company, consolidating its various subsidiaries under one umbrella.
- By 1993, Entergy had acquired the New Orleans-based utility, Gulf States Utilities, significantly expanding its service territory.
- In 2000, Entergy merged with the New Orleans-based utility company, Entergy New Orleans, further solidifying its market presence.
- In 2001, Entergy acquired the New England utility, the Maine Public Service Company.
Recent Developments and Financial Performance
As of September 30, 2024, Entergy Corporation reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (In Thousands) | $769,143 | $1,368,934 |
| Operating Revenues (In Thousands) | $597,000 | $616,600 |
| Earnings Per Share (Diluted) | $3.58 | $6.45 |
| Total Assets (In Millions) | $64,462 | $59,703 |
| Total Liabilities (In Millions) | $49,320 | $45,080 |
| Total Shareholders’ Equity (In Millions) | $15,141 | $14,743 |
Market Position and Strategy
Entergy Corporation operates as one of the largest integrated energy companies in the United States, serving approximately 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. The company focuses on providing reliable electricity while also investing in renewable energy sources to meet the growing demands for cleaner energy.
Recent Challenges and Future Outlook
In 2024, Entergy faced challenges including regulatory scrutiny and the impacts of severe weather events on its infrastructure and service delivery. The company's commitment to sustainability is reflected in its goal to reduce carbon emissions by 50% by 2030, aligning with broader industry trends towards renewable energy adoption.
| Debt Issuances | Amount (In Millions) | Type | Interest Rate |
|---|---|---|---|
| Series Mortgage Bonds | $400 | 5.45% | May 2024 |
| Series Mortgage Bonds | $500 | 5.35% | March 2024 |
| Series Mortgage Bonds | $700 | 5.70% | March 2024 |
Dividends and Returns to Shareholders
Entergy declared dividends per common share of $1.13 for the third quarter of 2024, up from $1.07 in the same period of 2023. This reflects the company’s commitment to returning value to its shareholders while navigating through economic uncertainties.
Conclusion
Entergy Corporation continues to evolve and adapt to the changing energy landscape, focusing on operational efficiency and sustainability as key components of its long-term strategy.
A Who Owns Entergy Corporation (ETR)
Major Shareholders
As of 2024, Entergy Corporation (ETR) has a diverse ownership structure, with significant institutional ownership. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | Institutional Investor | 12.5% |
| Vanguard Group, Inc. | Institutional Investor | 10.2% |
| State Street Corporation | Institutional Investor | 8.7% |
| FMR LLC (Fidelity) | Institutional Investor | 6.3% |
| Wellington Management Co. LLP | Institutional Investor | 5.5% |
| Entergy Corporation Employees | Insider Ownership | 1.2% |
Insider Ownership
The insider ownership of Entergy Corporation is relatively modest, with executives and board members holding approximately 1.2% of the total shares. Key executives and their respective holdings include:
| Executive | Position | Shares Owned |
|---|---|---|
| Leo P. Denault | Chairman & CEO | 150,000 |
| Andrew S. Marsh | President & COO | 100,000 |
| Michael J. McGowan | CFO | 75,000 |
| Other Executives | Various | 200,000 |
Stock Performance and Market Trends
As of September 30, 2024, the stock performance of Entergy Corporation shows a year-to-date return of approximately 15%, with shares trading at $115.50. The market capitalization of Entergy is approximately $22 billion. The stock has experienced volatility due to regulatory changes and market conditions affecting the utility sector.
Institutional Ownership Trends
Institutional ownership has been a critical factor in Entergy's stock performance. The following table highlights the changes in institutional ownership over the past year:
| Quarter | Institutional Ownership (%) |
|---|---|
| Q1 2023 | 72.3% |
| Q2 2023 | 73.5% |
| Q3 2023 | 74.1% |
| Q4 2023 | 75.0% |
| Q1 2024 | 75.5% |
Dividends and Financial Metrics
Entergy Corporation has a consistent dividend policy, with dividends declared as follows:
| Period | Dividend per Share |
|---|---|
| Q1 2024 | $1.13 |
| Q2 2024 | $1.13 |
| Q3 2024 | $1.13 |
| Q4 2024 (Projected) | $1.13 |
The company reported a net income of $645.8 million for the third quarter of 2024, translating to earnings per share of $2.99.
Entergy Corporation (ETR) Mission Statement
Overview of Mission Statement
Entergy Corporation's mission emphasizes their commitment to providing safe, reliable, and affordable energy while being a responsible corporate citizen. The company aims to support the communities it serves and to lead in the energy transition towards a cleaner, sustainable future.
Key Components of the Mission Statement
- Safety: Prioritizing the safety of employees, customers, and communities.
- Reliability: Ensuring consistent and dependable energy delivery.
- Affordability: Maintaining competitive pricing for customers.
- Sustainability: Committing to environmental stewardship and reducing carbon emissions.
- Community Engagement: Actively participating in and investing in local communities.
Financial Performance Indicators (2024)
For the nine months ending September 30, 2024, Entergy Corporation reported significant financial metrics:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Operating Revenues | $9,137,348,000 | $9,422,607,000 |
| Net Income | $774,022,000 | $1,374,026,000 |
| Operating Expenses | $7,155,873,000 | $7,061,189,000 |
| Net Cash Provided by Operating Activities | $3,109,000,000 | $3,231,000,000 |
| Cash and Cash Equivalents (End of Period) | $1,412,000,000 | $1,520,000,000 |
Debt and Capital Structure
As of September 30, 2024, Entergy Corporation's long-term debt and capital structure were as follows:
| Debt Category | Book Value | Fair Value |
|---|---|---|
| Entergy Corporation | $27,880,440,000 | $26,113,062,000 |
| Entergy Arkansas | $5,135,751,000 | $4,785,447,000 |
| Entergy Louisiana | $9,876,127,000 | $9,185,690,000 |
| Entergy Mississippi | $2,426,893,000 | $2,215,355,000 |
| Entergy New Orleans | $736,611,000 | $712,343,000 |
| Entergy Texas | $3,561,402,000 | $3,356,778,000 |
| System Energy | $809,585,000 | $794,618,000 |
Community and Environmental Commitment
Entergy is also focused on reducing its carbon footprint and enhancing sustainability. The company's investments in renewable energy projects are part of their strategy to transition towards cleaner energy sources.
Pension and Employee Benefits
Entergy expects to contribute $270 million to its qualified pension plans in 2024, with $164.3 million already contributed as of September 30, 2024. The breakdown of expected contributions by subsidiary is as follows:
| Subsidiary | Expected 2024 Contributions | Contributions Made (as of Sep 2024) |
|---|---|---|
| Entergy Arkansas | $55,112,000 | $33,560,000 |
| Entergy Louisiana | $48,401,000 | $29,375,000 |
| Entergy Mississippi | $14,980,000 | $9,820,000 |
| Entergy New Orleans | $4,931,000 | $2,643,000 |
| Entergy Texas | $8,272,000 | $4,782,000 |
| System Energy | $16,650,000 | $9,994,000 |
How Entergy Corporation (ETR) Works
Business Model
Entergy Corporation operates primarily as a utility company, engaged in the generation, transmission, distribution, and sale of electric power in the Gulf South region of the United States, specifically in Arkansas, Louisiana, Mississippi, and Texas. The company also operates a small natural gas distribution business in Louisiana.
Financial Performance
As of September 30, 2024, Entergy reported the following key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Revenues | $3,389,100,000 | $3,595,522,000 | ($206,422,000) |
| Operating Income | $1,125,862,000 | $1,143,383,000 | ($17,521,000) |
| Net Income | $645,754,000 | $669,714,000 | ($23,960,000) |
| Total Assets | $64,462,049,000 | $59,703,396,000 | $4,758,653,000 |
| Cash and Cash Equivalents | $1,412,000,000 | $1,520,000,000 | ($108,000,000) |
Revenue Breakdown
Entergy’s total operating revenues for the nine months ended September 30, 2024, were $9,137,348,000, compared to $9,422,607,000 for the same period in 2023. The breakdown is as follows:
| Revenue Source | 2024 | 2023 |
|---|---|---|
| Electric Revenues | $8,950,373,000 | $9,195,588,000 |
| Natural Gas Revenues | $133,342,000 | $130,389,000 |
| Other Revenues | $53,633,000 | $96,630,000 |
Operating Expenses
In the nine months ending September 30, 2024, Entergy's operating expenses totaled $7,155,873,000, compared to $7,061,189,000 for the same period in 2023. The components include:
| Expense Category | 2024 | 2023 |
|---|---|---|
| Fuel, Fuel-Related Expenses, and Gas Purchased for Resale | $1,787,148,000 | $2,189,592,000 |
| Purchased Power | $641,919,000 | $754,199,000 |
| Other Operation and Maintenance | $2,111,692,000 | $2,043,184,000 |
| Depreciation and Amortization | $1,503,505,000 | $1,362,728,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Entergy's cash flow activities were as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents at Beginning of Period | $133,000,000 | $224,000,000 |
| Net Cash Provided by Operating Activities | $3,109,000,000 | $3,231,000,000 |
| Net Cash Used in Investing Activities | ($4,002,000,000) | ($3,579,000,000) |
| Net Cash Provided by Financing Activities | $2,172,000,000 | $1,644,000,000 |
| Cash and Cash Equivalents at End of Period | $1,412,000,000 | $1,520,000,000 |
Debt and Equity
As of September 30, 2024, Entergy Corporation had a total long-term debt of approximately $3,561,402,000, while the common stock equity stood at $818,039,000.
Pension Obligations
Entergy expects to contribute approximately $270,000,000 to its qualified pension plans in 2024, with $164.3 million contributed by September 30, 2024.
Regulatory and Market Environment
Entergy operates in a heavily regulated environment. The company is subject to various regulatory charges and credits, including a notable $317 million settlement charge recognized in May 2024 related to pension liabilities.
Operational Metrics
For the three months ended September 30, 2024, Entergy's electric energy sales for its utility segment were as follows:
| Sales Category | 2024 (GWh) | 2023 (GWh) |
|---|---|---|
| Residential | 4,586 | 5,049 |
| Commercial | 3,295 | 3,395 |
| Industrial | 9,201 | 8,016 |
| Total Retail Sales | 17,296 | 16,676 |
How Entergy Corporation (ETR) Makes Money
Utility Operations
Entergy Corporation primarily generates revenue through its Utility segment, which includes the generation, transmission, distribution, and sale of electric power in Arkansas, Mississippi, Texas, and Louisiana. This segment generated total operating revenues of $9.14 billion for the nine months ended September 30, 2024, a decrease from $9.42 billion in the same period for 2023.
| Revenue Source | 2024 (in Thousands) | 2023 (in Thousands) |
|---|---|---|
| Residential | $3,548,881 | $3,595,378 |
| Commercial | $2,260,956 | $2,291,673 |
| Industrial | $2,412,254 | $2,411,882 |
| Governmental | $202,655 | $204,999 |
| Total Billed Retail | $8,424,746 | $8,503,932 |
| Sales for Resale | $202,871 | $262,714 |
| Other Electric Revenues | $282,631 | $358,000 |
| Total Operating Revenues | $9,137,348 | $9,422,607 |
Natural Gas Revenue
Entergy's natural gas revenues also contribute to its financial performance. In 2024, natural gas revenues amounted to $133.3 million, slightly up from $130.4 million in 2023.
Operating Expenses
The operating expenses for the Utility segment totaled $7.16 billion for the nine months ended September 30, 2024, compared to $7.06 billion for 2023. Major components of these expenses include:
- Fuel, fuel-related expenses, and gas purchased for resale: $1.79 billion
- Purchased power: $641.9 million
- Other operation and maintenance: $2.11 billion
- Depreciation and amortization: $1.50 billion
- Taxes other than income taxes: $572.1 million
Net Income
For the nine months ended September 30, 2024, Entergy reported a consolidated net income of $774 million, down from $1.37 billion in 2023. The decrease was attributed to increased operational costs and regulatory charges.
Regulatory Charges
Regulatory charges significantly impacted Entergy's financials in 2024. Notably, a $151 million charge was recorded in the second quarter related to regulatory agreements in Louisiana. Additionally, a $132 million charge was recognized due to an adverse decision in a sales proceeding.
Investment and Financing Activities
Entergy's financing strategy includes the issuance of debt. In May 2024, Entergy issued $1.2 billion of junior subordinated debentures, impacting its interest expense, which rose to $887.5 million for the nine months ending September 30, 2024.
Conclusion on Revenue Composition
The revenue composition of Entergy Corporation as of 2024 highlights the company's reliance on its Utility operations, with ongoing regulatory challenges affecting profitability. Despite these challenges, the company continues to adapt its pricing strategies in response to operational costs and market conditions.
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Article updated on 8 Nov 2024
Resources:
- Entergy Corporation (ETR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Entergy Corporation (ETR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Entergy Corporation (ETR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.