Executive Summary

Q4 2022 EPS was $0.51 both as-reported and adjusted; full-year adjusted EPS was $6.42, consistent with management’s “top half” message for 2022 and followed by initiating 2023 adjusted EPS guidance of $6.55–$6.85 .
Sequentially, EPS declined versus Q3 ($2.74 as-reported; $2.84 adjusted) driven by higher O&M, depreciation, taxes other than income taxes, interest expense, and a higher effective tax rate, partially offset by retail volume/weather and regulatory actions .
Segment mix in Q4: Utility earnings of $241mm, Parent & Other loss of $(122)mm, and EWC loss of $(12)mm; consolidated earnings were $106mm as-reported and $107mm adjusted .
Operating cash flow strengthened quarter-over-quarter to $776mm, supported by higher Utility customer receipts, lower non-capital storm restoration spending, receipt of E‑NO’s securitization proceeds, and lower income tax payments .
Estimates context: Wall Street consensus via S&P Global was unavailable; management’s guidance becomes the near-term anchor for expectations .

What Went Well and What Went Wrong

What Went Well

“We finished 2022 strong and delivered meaningful outcomes for our key stakeholders,” highlighting delivery of clean energy and resilience initiatives; 2022 adjusted EPS of $6.42 landed in the top half of guidance as communicated throughout the year .
Regulatory progress: LPSC approved E‑LA’s Hurricane Ida storm recovery and securitization; E‑LA filed a multi‑year resilience plan; PUCT approved E‑TX’s Orange County Advanced Power Station—supporting future load and reliability .
Cash generation improved in Q4: consolidated OCF rose to $776mm, with Utility OCF at $1,089mm, benefiting from customer receipts and storm securitization inflows .

What Went Wrong

Q4 profitability compressed versus Q3: as-reported EPS fell from $2.74 to $0.51; drivers included higher O&M, depreciation, taxes other than income taxes, interest expense, and a higher effective tax rate (offset by higher retail sales/weather and regulatory actions) .
Parent & Other losses widened year-over-year for 2022 to $(366)mm, driven by higher interest on intercompany preferreds (Utility offset), increased charitable contributions, and higher interest expense .
EWC contribution turned negative in Q4 (loss $(12)mm) as the merchant exit concluded; while full-year EWC was positive $63mm, quarterly variability and reduced revenue from plant shutdowns remained a headwind .

Financial Results

Consolidated EPS and Earnings (Quarterly)

Metric	Q2 2022	Q3 2022	Q4 2022
EPS (As-Reported)	$0.78	$2.74	$0.51
EPS (Adjusted)	$1.78	$2.84	$0.51
Earnings (As-Reported, $mm)	$160	$561	$106
Earnings (Adjusted, $mm)	$364	$580	$107
Diluted Avg Shares (mm)	205	205	209

Notes: Adjusted EPS excludes specified regulatory/tax/segment items; see company reconciliation appendices .

Segment Earnings (As-Reported, $mm)

Segment	Q2 2022	Q3 2022	Q4 2022
Utility	$153	$672	$241
Parent & Other	$(80)	$(92)	$(122)
EWC	$87	$(19)	$(12)
Consolidated	$160	$561	$106

KPIs (Operating Cash Flow, $mm)

KPI	Q2 2022	Q3 2022	Q4 2022
Utility OCF	$361	$1,086	$1,089
Parent & Other OCF	$(84)	$(36)	$(210)
EWC OCF	$1	$(56)	$(103)
Consolidated OCF	$278	$993	$776

Comparison context:

Sequential EPS: $0.51 in Q4 vs $2.74 in Q3 (as-reported); adjusted $0.51 vs $2.84 .
Year-over-year Q4 EPS: $0.51 vs $1.28 (as-reported); $0.51 vs $0.76 (adjusted) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY 2022	$6.15–$6.45 (affirmed in Q2)	$6.25–$6.45 (narrowed in Q3)	Raised low end; narrowed range
Adjusted EPS	FY 2023	None	$6.55–$6.85	Initiated

Notes: Company provides adjusted EPS guidance without GAAP reconciliation due to unpredictability of adjustments .

Earnings Call Themes & Trends

Note: A Q4 2022 earnings call transcript was not found in available documents for ELC; themes reflect Q2–Q4 earnings releases.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Resilience & Grid Hardening	Q2: E‑NO preliminary grid hardening plan; E‑LA/E‑NO/E‑AR FRPs filed . Q3: E‑LA completed underground distribution upgrades; 230kV Mississippi River crossing; LPSC approvals .	E‑LA filed Entergy Future Ready resilience plan for first five years .	Building momentum; multi-year execution plan
Storm Recovery & Securitization	Q2/Q3: CCNO approved $206mm Ida securitization for E‑NO; approvals for E‑LA/E‑TX storm securitization .	LPSC approved E‑LA Ida storm recovery and securitization; customer-sharing and tax effects noted .	Recovery substantially in place; ongoing customer benefit sharing
Renewable & Clean Energy Development	Q2: E‑MS Sunflower Solar (100 MW); E‑AR RFP increased to 1,000 MW; E‑TX/Sempra MOU . Q3: LPSC approved 475 MW solar; Geaux Green tariff .	Strategic emphasis maintained; nuclear as clean baseload highlighted (River Bend refueling milestone) .	Expanding portfolio; supportive regulatory outcomes
Regulatory/Legal (SERI/FERC)	Q2: SERI recorded $(551)mm reg. charge (partial settlement effects) . Q3: Continued reference to SERI settlement context .	SERI items remain impactful in full-year adjustments; adjustments excluded from non-GAAP .	Resolution progressing; financial adjustments isolated from adjusted EPS
Load & Industrial Growth	Q3: Higher retail sales volume including weather impacts .	Continued commentary on weather and retail volume as drivers .	Stable-to-positive demand signals

Management Commentary

“We finished 2022 strong and delivered meaningful outcomes for our key stakeholders. We have laid out a clear path that will deliver exceptional customer value including clean energy and resilience.” — Drew Marsh, Chairman & CEO (Q4 release) .
“We continued to make meaningful progress in the third quarter… We expect to deliver strong results for 2022 driven by the growth of our regulated operations.” — Drew Marsh (Q3 release) .
“Higher retail sales were driven by customer growth and hot temperatures across our region. As a result, we are implementing several initiatives to improve affordability and customer experience.” — Leo Denault (Q2 release) .

Q&A Highlights

No Q4 2022 earnings call transcript was available in the ELC document set; call details referenced a webcast/teleconference but full transcript was not present for ELC. Guidance clarifications and regulatory updates were provided in the press release and appendices .

Estimates Context

Wall Street consensus EPS/revenue estimates via S&P Global were unavailable at the time of this analysis due to access limits; therefore, estimate comparisons are not shown .
Management’s FY2023 adjusted EPS guidance of $6.55–$6.85 serves as the principal benchmark for near-term expectations .

Key Takeaways for Investors

Q4 earnings reset after a strong Q3; expense pressures (O&M, depreciation, taxes, interest) and tax rate weighed on sequential EPS, while Utility OCF remained robust—focus on expense discipline and rate mechanisms will matter near term .
Regulatory execution in Louisiana (Ida securitization, resilience plan filing) and Texas (OCAPS approval) underpins capital deployment and future rate base growth, supporting 2023 guidance .
The merchant exit (EWC) is largely complete; consolidated results will be increasingly Utility-driven, improving earnings quality and visibility (adjusted EPS framework excludes EWC/one-offs) .
Cash generation strengthened in Q4; watch customer receipts and storm-related flows as transitional cash tailwinds normalize in 2023 .
With S&P Global consensus unavailable, trade around management guidance updates, regulatory milestones (LPSC approvals on resilience plan), and load indicators; any tightening/raising of FY2023 guidance would be a catalyst .
Medium-term thesis: regulated growth (resilience/hardening, renewables, industrial load) + constructive regulation should sustain EPS in guided range; monitor expense inflation and interest costs as key risks .

ENTERGY LOUISIANA, LLC (ELC)·Q4 2022 Earnings Summary