ENTERGY MISSISSIPPI, LLC (EMP)·Q3 2024 Earnings Summary

Executive Summary

• Entergy reported Q3 2024 adjusted and as-reported EPS of $2.99; management raised the floor of FY24 adjusted EPS guidance by $0.10 to $7.15–$7.35 (pre-split), and announced a 2-for-1 stock split effective Dec 13, 2024 .
• Utility segment earnings rose year over year ($787mm in Q3 2024 vs $752mm in Q3 2023), while Parent & Other losses increased; consolidated as-reported earnings were $645mm (vs $667mm in Q3 2023) amid milder weather and higher depreciation/interest .
• Operating cash flow strengthened in the quarter (Consolidated OCF $1,562mm vs $1,405mm in Q3 2023), driven by lower fuel/power payments, pension timing, and higher customer receipts .
• Mississippi-specific: Entergy Mississippi (E‑MS) announced plans for its first new natural gas power station in 50 years, and filings were submitted to divest Louisiana’s share of Grand Gulf energy/capacity to E‑MS (targeting Jan 1 effective date) — supporting regional growth and resource alignment .

What Went Well and What Went Wrong

What Went Well

• Guidance and capital outlook: Management raised the bottom of FY24 adjusted EPS guidance to $7.15 (pre-split), citing strong execution and a higher growth capital plan; long-term adjusted EPS outlook starting in 2026 was stepped up with a $0.35–$0.85 annual increase through 2028 .
• Utility performance and OCF: Utility earnings increased to $787mm in Q3 2024 (from $752mm in Q3 2023), and consolidated OCF rose $157mm year over year to $1,562mm on lower fuel/power payments, pension timing, and stronger receipts .
• Strategic/regulatory wins (with Mississippi tailwinds): E‑MS announced a new gas station (first in 50 years) and the companies filed to transfer Louisiana’s Grand Gulf share to E‑MS; Louisiana approvals advanced FRP renewal and settlements, underpinning growth investments across the footprint .
  • Quote: “We achieved outstanding results across operational, regulatory, resilience, and growth dimensions” — Drew Marsh, CEO .

What Went Wrong

• Weather/volume and cost headwinds: Milder weather vs Q3 2023 reduced EPS vs the prior year; depreciation and interest expense were higher, and share dilution from equity forward settlements weighed on per-share results .
• Parent & Other drag: P&O loss widened to $(142)mm vs $(85)mm in Q3 2023, reflecting lower non-service pension income, legal provision changes, and higher interest expense (adjusted P&O loss also worsened) .
• Storm costs (Q3 event): Management estimated ~$220–$240mm of Hurricane Francine restoration costs (~85% in Louisiana) and is engaging regulators for timely recovery; not expected to use securitization at this level .

Financial Results

EPS vs prior periods (oldest → newest)

Segment earnings ($mm)

Operating cash flow ($mm)

Note: Revenue and margin detail were not disclosed in the 8‑K; management commentary and variances are provided instead .

Mississippi highlights for Q3

• E‑MS: plan to build its first new natural gas power station in 50 years .
• Grand Gulf reallocation: filings at MPSC and FERC to transfer E‑LA’s Grand Gulf energy/capacity to E‑MS; management is targeting Jan 1 effectiveness .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We achieved outstanding results across operational, regulatory, resilience, and growth dimensions.” — Drew Marsh, Chair & CEO .
• “Adjusted EPS for the quarter was $2.99 … weather-adjusted retail sales growth was 5%, with industrials up 10% … OCF nearly $1.6 billion, up $157 million YoY.” — Kimberly Fontan, CFO .
• “We are raising the bottom of the guidance range by $0.10 … long-term outlook stepped up with a $0.35–$0.85 annual increase between 2026 and 2028 … Board approved a 2-for-1 stock split; 6% dividend increase.” — Management remarks .
• Mississippi focus: “Filings submitted to the MPSC and FERC to divest E‑LA’s share of Grand Gulf energy and capacity to E‑MS,” with management “targeting a January 1 effective date” .

Q&A Highlights

• Guidance/outlook: Bottom of FY24 adjusted EPS range raised by $0.10; long-term outlook lifted owing to higher growth capital and industrial demand .
• Growth and capital: Capital plan increased by $7bn through 2028 to support higher industrial sales and renewables; preliminary details to be expanded at EEI .
• Storm costs/recovery: Hurricane Francine restoration costs estimated at ~$220–$240mm (~85% Louisiana); engaging regulators; securitization not expected at this level .
• Credit/financing: Credit metrics at/above agency expectations; SERI upgrade by S&P; DOE loan applications ($2.4bn) in phase 2; equity needs largely forward-contracted through 2026 .

Estimates Context

• S&P Global consensus EPS/revenue for Q3 2024 was unavailable due to request limits at time of analysis. Values retrieved from S&P Global could not be displayed; therefore, no comparison to Wall Street consensus is provided here (S&P Global data access limit reached).

Key Takeaways for Investors

• Raising the bottom of FY24 adjusted EPS guidance and a higher multi-year outlook are clear positives; coupled with a 6% dividend hike and a 2-for-1 split, the setup is supportive for sentiment heading into year-end .
• Utility earnings and OCF strength offset weather and cost headwinds; consolidated OCF improved materially, reinforcing funding capacity for capex and credit metrics .
• Mississippi is a focal point: new E‑MS gas station plan and the proposed Grand Gulf allocation shift to E‑MS should support reliability, economics, and load growth in the state .
• Regulatory trajectory remains constructive (LPSC/CCNO approvals), underpinning execution on resilience and growth capex; continued progress at FERC remains a watch item (SERI settlement approval) .
• Near-term trading catalysts: confirmation of FERC approvals, clarity on EEI capital/outlook details, and progress on DOE loans; weather normalization and storm recovery timing remain variables .
• Medium-term thesis: robust industrial/data center load, standardized generation builds (CCS-ready), expanding renewables pipeline, and resilience programs point to sustained rate base growth and upgraded EPS trajectory .

Appendix: Other Q3 2024 Press Releases

• Entergy to report Q3 results Oct 31 (call details) .
• CCS initiative: Crescent Midstream selected to develop an integrated CO2 capture solution for an Entergy-owned gas plant in Lake Charles, LA (indicative of CCS positioning) .
• Leadership: Rod West announced retirement timeline; highlights recent wins including Entergy Mississippi’s AWS partnership and regulatory approvals .

Prior quarter reference materials used for trend analysis:

• Q2 2024 8‑K press release: adjusted EPS $1.92; affirmed FY24 adjusted EPS $7.05–$7.35 (prior guidance), settlements (E‑LA FRP, SERI in principle), and resiliency filings .

All figures and statements cited above reference the company’s Q3 2024 8‑K, Q2 2024 8‑K, and Q3 2024 earnings call transcript and press releases as follows: .