Executive Summary

Adjusted EPS was $2.84, up 16% year over year (vs. $2.45) and up sharply vs. Q2’s $1.78, driven by stronger retail sales (weather and industrial) and regulatory actions at the operating companies; as-reported EPS was $2.74 .
Guidance narrowed: FY22 adjusted EPS raised at the low end to $6.25–$6.45 (from $6.15–$6.45), and the quarterly dividend was increased to $1.07 per share (annualized $4.28) — key near-term catalysts .
Louisiana-specific actions advanced: LPSC approved four solar projects (475 MW) and the Geaux Green green tariff (fully subscribed quickly), while E-LA continued resilience investments, including its longest underground distribution project and a major 230 kV Mississippi River crossing .
Headwinds included higher O&M (vegetation, transmission, nuclear operations), higher depreciation and interest expense, and lower operating cash flow vs. prior year, partly offset by stronger customer receipts; management highlighted continuous improvement and regulatory mechanisms to manage inflation and recovery lags .

What Went Well and What Went Wrong

What Went Well

Strong volume and industrial demand: “Excluding weather, sales growth in the quarter was 5.7%. Industrial sales were up 7%,” with chlor-alkali and transportation leading; weather also favorable .
Regulatory and renewable momentum in Louisiana: “The LPSC approved four solar projects totaling 475 MW” and approved the Geaux Green tariff, which “was fully reserved in just a few minutes,” indicating robust C&I sustainability demand .
Guidance and dividend confidence: “We are narrowing our 2022 guidance by raising the bottom of the range by $0.10 per share” and raising the quarterly dividend by 6% to $1.07, reflecting steady growth outlook and capital return .

What Went Wrong

Cost inflation and O&M pressure: Power delivery expenses (vegetation), transmission maintenance, and nuclear operations increased; bad debt rose after higher summer bills; depreciation and interest also higher from ongoing investments .
Operating cash flow declined year over year: Consolidated OCF fell to $993 million in Q3 2022 from $1,264 million in Q3 2021 due to higher fuel/purchased power payments, EWC wind-down, and higher O&M/refueling, partly offset by customer receipts and lower pension contributions .
Ongoing regulatory/structural items: Earnings lag in Louisiana FRP and SERI litigation matters persist, with management working toward more contemporaneous recovery and settlements to improve earned returns and credit metrics .

Financial Results

EPS and Earnings Comparison

Metric	Q3 2021	Q2 2022	Q3 2022
Consolidated As-Reported EPS ($)	2.63	0.78	2.74
Consolidated Adjusted EPS ($)	2.45	1.78	2.84
Utility Adjusted EPS ($)	2.77	2.17	3.29

Segment Earnings ($, after-tax)

Segment	Q3 2021	Q2 2022	Q3 2022
Utility (Adjusted)	$559 mm	$784 mm YTD; $444 mm Q2	$672 mm
Parent & Other (Adjusted)	$(65) mm	$(151) mm YTD; $(80) mm Q2	$(92) mm
EWC (Adjusted)	$0 mm	$0 mm	$0 mm
Consolidated (Adjusted)	$494 mm	$364 mm	$580 mm

Weather Impact and Operating Cash Flow

Metric	Q3 2021	Q2 2022	Q3 2022
Estimated Weather Impact (EPS, $)	(0.04)	0.24	0.10
Utility OCF ($ mm)	1,289	361	1,086
Parent & Other OCF ($ mm)	(68)	(84)	(36)
EWC OCF ($ mm)	43	1	(56)
Consolidated OCF ($ mm)	1,264	278	993

Note: Revenue and margin percentages were not disclosed in the cited press materials; S&P Global fundamentals retrieval was blocked by daily limits, so no revenue/margin figures are presented. Values would be retrieved from S&P Global if available.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY 2022	$6.15–$6.45	$6.25–$6.45	Raised low end by $0.10
Dividend	Quarterly	$1.01 (prior rate implied; increase stated as 6%)	$1.07	Raised 6%
EWC Contribution to As-Reported EPS	FY 2022	~$0.20	~$0.25	Higher contribution estimate

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2022)	Current Period (Q3 2022)	Trend
Resilience Investment Plan	Emphasis on storm cost recovery/securitization approvals; groundwork for filings	$15B 10-year accelerated plan; filings in N.O., planned in LA/TX; asset hardening progress (22k poles, 2.2k structures)	Accelerating and formalizing
Hydrogen/OCAPS	MOU in TX; renewables collaboration; early hydrogen narratives	OCAPS ALJ recommendation positive; day-one up to 30% H2 capability targeted; IRA improves hydrogen economics	Advancing approvals and scope
Industrial Load/LNG/Electrification	Hot-weather boost; customer growth; RFP expansions	Industrial sales +7%; LNG and broader industrial electrification discussions; onshoring tailwinds	Strengthening pipeline
Affordability Initiatives	Focus on customer support and storm mechanisms	Bill credits, energy fairs, weatherization; CI to offset inflation; modern assets reduce fuel costs (~$400 mm at 2022 gas prices)	Expanding tools
IRA Tax Effects (AMT/PTCs)	Initial views on benefits	No AMT until 2026; nuclear and solar PTCs benefit customers, mitigate volatility	Clarified timing/benefit
Louisiana FRP/Earnings Lag	Annual FRP filings; lag acknowledged	Need for more contemporaneous recovery; working to move up from bottom of band	Active remediation

Management Commentary

“Adjusted earnings were $2.84 per share… we are narrowing our guidance range by raising the bottom end $0.10… and affirming our outlooks through 2025.” — CFO Kimberly Fontan .
“The LPSC approved four solar projects totaling 475 MW… Geaux Green tariff… fully reserved in just a few minutes.” — CEO Drew Marsh .
“If approved, OCAPS will be our first unit capable of burning up to 30% hydrogen on day one… IRA promises to improve hydrogen economics.” — CEO Drew Marsh .
“Affordability remains a top priority… modern assets are reducing fuel costs by an estimated $400 million (based on 2022 gas prices).” — CEO Drew Marsh .
“We do not expect to be subject to the minimum tax provisions until 2026… we see meaningful value from solar PTCs as well.” — CFO Kimberly Fontan .

Q&A Highlights

O&M and inflation: Pull-forwards and one-time assistance raised O&M in 2022; inflation assumed into 2023 with CI offsets; interest assumptions updated to ~6% LT debt and ~5.25% ST debt .
Financing levers: Evaluating differences between private and public capital, but “no new news” on potential minority sale; equity forwards (~$1.1B of ~$1.2B plan) to be exercised by year-end .
IRA/AMT: Corporate minimum tax not expected until 2026; nuclear PTCs begin earlier and can benefit customers while mitigating future AMT effects .
Louisiana resiliency docket: Stakeholders supportive; focus on pacing and bill impacts; undergrounding in certain areas considered within cost-benefit framework .
SERI settlement: Active engagement toward broader settlements; nothing public yet; longer-term aim to return to “normal” litigation cadence .

Estimates Context

Wall Street consensus for Q3 2022 EPS and revenue via S&P Global was unavailable due to daily request limits at time of retrieval; therefore comparisons to consensus could not be provided. If available, values would be retrieved from S&P Global and used as the basis for estimate comparisons.

Key Takeaways for Investors

Near-term: Guidance raise and 6% dividend hike are positive sentiment drivers; strong industrial demand and favorable weather supported the quarter .
Louisiana focus: Rapid green tariff uptake and approved solar projects underscore E-LA’s C&I sustainability demand; resilience filing and contemporaneous recovery efforts are central to improving earned returns and credit metrics .
Cost discipline: Inflation/O&M pressures are real; CI initiatives and regulatory mechanisms are key to protecting EPS trajectory in 2023 .
Strategic optionality: Hydrogen-enabled OCAPS, IRA PTCs, and electrification of industrial processes position the Gulf Coast footprint for durable load growth and asset modernization .
Regulatory watch items: SERI settlements and Louisiana FRP renewal/recovery pacing remain critical; progress here is pivotal for medium-term valuation and credit profile .
Cash/credit: OCF decline vs. prior year was driven by fuel and EWC wind-down; securitizations and equity forward settlement should alleviate near-term borrowing needs .
Medium-term thesis: 6%–8% EPS growth through 2025 anchored by industrial onshoring, renewables/green products, resilience, and IRA incentives, contingent on continued regulatory execution .

ENTERGY LOUISIANA, LLC (ELC)·Q3 2022 Earnings Summary