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About Entergy Corporation

Entergy is into energy. The integrated utility holding company's subsidiaries distribute electricity to some 2.9 million customers in four southern states (Arkansas, Louisiana, Mississippi, and Texas) and provide natural gas to about 200,000 customers in Louisiana. Entergy, owns power plants that have a combined generating capacity of about 30,000 MW, including approximately 9,000 MW of nuclear power. Entergy also provides ownership, operation, and decommissioning of nuclear power plants in the northern US. The company's regulated utilities have little retail competition as they are deemed by state regulators as the sole providers of electricity in their service areas.

Operations

The company operates two business segments: Utility and Entergy Wholesale Commodities.

The Utility segment produces 85% of revenue by generating, transmitting, distributing, and selling electric power to customers in its regulated service areas in the US Gulf States region. It also provides natural gas utility services to customers in and around Baton Rouge, Louisiana, and New Orleans. The segment is composed of several regulated utility companies, including: Entergy Arkansas, Inc., Entergy Louisiana LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., and Entergy Texas. Four nuclear power plant sites with capacity of more than 5,300 MW are owned and operated by corporations that roll up into this segment. Of its generation capacity, about 40% is from natural gas, more than 25% is from nuclear, and the rest comes from coal-fired plants. Hydroelectric power provided less than 1% of Entergy Arkansas's generation in 2019.

Entergy Wholesale Commodities segment produces about 15% of total revenue through its ownership, operation and decommissioning of nuclear power plants (about 2,900 MW of capacity) and fossil fuel plants (some 400 MW of capacity) and the sale of its electricity on the wholesale market. It also provides management services to Nebraska's Cooper Nuclear Station (800 MW of capacity).

Geographic Reach

Entergy's Utility segments operates power plants in Arkansas, Mississippi, and its headquarters in Louisiana. It provides power to customers in those states and in Texas. Entergy New Orleans distributes and transports natural gas within New Orleans and Louisiana through approximately 2,600 miles of gas pipeline.

The Wholesale Commodities segment has power plants and customers in New York, Michigan , Nebraska, Arkansas, and Louisiana.

Sales and Marketing

Entergy delivers electricity to more than 710,000 customers in Arkansas, about 1.1 million in Louisiana, more than 450,000 in Mississippi, and some 460,000 in Texas. It provides natural gas to approximately 100,000 customers in New Orleans and nearly another 100,000 throughout the rest of Louisiana. Entergy's retail business (mostly through the regulated utility companies) generates some 40% of sales volume from industrial businesses, nearly 25% from commercial enterprises, more than 25% from residential, and the rest from government agencies, wholesale, and other customers.

Entergy Wholesale Commodities segment sells both energy and capacity from its nuclear plants to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies such Consumers Energy, companies from which Entergy purchased plants with the promise to continue providing energy to them. It also sells to transmission-sharing entities such as NYISO and MISO.

The company's regulated utilities have little retail competition as they are deemed by state regulators as the sole providers of electricity in their service areas.

Financial Performance

Entergy's revenue has not been consistently increasing over the past five years, moving up and down from year to year. It had its peak on 2015, with $11.5 billion revenue. Net income, on the other hand, after its sharp decreases in 2015 and 2016, had an increase in 2017 and has been continuously increasing since then.

In 2019, revenue fell by 1% to $10.9 billion. The decrease was driven by the $174 million loss in the Entergy Wholesale Commodities segment.

Net income rose to $1.3 billion in 2019, 46% increase from 2018, primarily due to higher retail electric price and lower nuclear refueling outage expenses, partially offset by lower volume/weather, higher interest expense, and higher depreciation and amortization expenses.

Cash holdings at the end of 2019 is $426 million, a decrease from $481 million the year prior. Operations generated a net inflow of $2.8 billion in cash, which was more than offset by $4.5 billion used in investing activities. Financial activities brought in a net cash inflow of $1.6 billion, primarily for retirement of long-term debt.

Strategy

Entergy plans to spend on routine capital projects that are necessary to support reliability of its service, equipment, or systems and to support normal customer growth. These capital investments includes investments in Lake Charles Power Station, Washington Parish Energy Center, Sunflower Solar Facility, New Orleans Power Station, Montgomery County Power Station, and Searcy Solar Facility and investments in Entergy's Utility nuclear fleet. They also plan to invest in transmission spending to enhance reliability, reduce congestion and enable economic growth, distribution spending to enhance reliability and improve service to customers. Entergy Wholesale Commodities invests in component replacements, software and security, and dry cask storage.

Entergy's strategy is to operate and grow a world-class utility business that creates sustainable value for its customers, employees, communities, and owners. Their current scope includes electricity generation, transmission, and distribution and natural gas distribution. Entergy also continually seeks opportunities to grow its utility business to benefit all stakeholders and to optimize its portfolio of assets in an ever-dynamic market. The Utility business segment will continue to modernize its operations, maintain reliability, and better serve its customers while growing the business. The Entergy Wholesale Commodities business segment will continue to manage the risk of its operating portfolio as Entergy completes its exit from the merchant power business.

Mergers and Acquisitions

In October 2019, Entergy Mississippi acquired the Choctaw Generating Station, an 810 MW natural gas fired combined-cycle turbine plant located near French Camp, Mississippi, from a subsidiary of GenOn Energy Inc. The purchase price for the Choctaw Generating Station was approximately $305 million.

Company Background

Entergy has had a colorful and varied start in the beginning of the 20th Century. Its roots can be traced back to Arkansas Power & Light (1913), New Orleans Public Service Inc (1922), Louisiana Power & Light, and Mississippi Power & Light (both formed in 1927). In 1949, these four companies, along with other utilities, were combined into a Maine holding company, Electric Power and Light. In 1949, after a small phase when the unified company was dissolved, a new holding company, Middle South Utilities, emerged that year to take over the four utilities' assets. In 1989, following a badly botched construction plan of two nuclear facilities (behind schedule and over budget)– whereby Middle South tried to pass on the costs to customers but eventually settled the disputes— the company changed its name to Entergy to distance itself from the controversy. 

Entergy Corporation

639 Loyola Ave Ste 300
New Orleans, LA 70113-7106
Phone: 1 (504) 576-4000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: ETR
Stock Exchange: , NYSE
Chairman and CEO: Leo P. Denault
SVP and COO: Paul D. Hinnenkamp
EVP and CFO: Andrew S. Marsh
Employees (This Location): 135
Employees (All Locations): 13,635

Major Office Locations

New Orleans, LA

Other Locations

Blytheville, AR
El Dorado, AR
Forrest City, AR
Hot Springs, AR
Little Rock, AR
Malvern, AR
Newark, AR
Redfield, AR
Rockport, AR
Russellville, AR
Stuttgart, AR
Warren, AR
Wynne, AR
Washington, DC
Amite, LA
Baton Rouge, LA
Delhi, LA
Destrehan, LA
Dubach, LA
Gretna, LA
Hahnville, LA
Hammond, LA
Jefferson, LA
Killona, LA
Lafayette, LA
Lake Charles, LA
La Place, LA
Metairie, LA
Monroe, LA
New Orleans, LA
Reserve, LA
Sterlington, LA
Vidalia, LA
Westlake, LA
West Monroe, LA
Westwego, LA
Winnsboro, LA
Zachary, LA
Plymouth, MA
Cleveland, MS
Gloster, MS
Greenville, MS
Indianola, MS
Jackson, MS
Port Gibson, MS
Senatobia, MS
Southaven, MS
Buchanan, NY
White Plains, NY
Austin, TX
Beaumont, TX
Houston, TX
Huntsville, TX
New Caney, TX
Orange, TX
Port Arthur, TX
Spring, TX
The Woodlands, TX
Willis, TX
Winnie, TX
Brattleboro, VT
Vernon, VT