Executive Summary

Q4 2023 consolidated results: as-reported EPS $4.64 and adjusted EPS $0.52; adjusted earnings were $111M vs $107M in Q4 2022, with notable non-GAAP adjustments from an IRS audit benefit and regulatory items .
Entergy initiated FY 2024 adjusted EPS guidance of $7.05–$7.35 and reaffirmed 6–8% long-term adjusted EPS CAGR; utility O&M is expected to “return to normal” at ~$2.7B in 2024 .
ENO-specific regulatory milestones: New Orleans formula rates approved in September and FRP extended for 3 years; CCNO certified Hurricane Ida restoration costs as prudent; ENO won GRIP funding ($55M federal share on a $110M resilience/microgrid project) .
Industrial growth narrative strengthened (AWS hyperscale data centers in MS; broader pipeline across EV batteries, LNG/blue hydrogen), providing load and capital investment catalysts for the system that includes ENO .

What Went Well and What Went Wrong

What Went Well

“Best forced outage rates in a decade” and system performance through record summer demand; management emphasized operational excellence and resilience investments .
Regulatory progress for ENO: September formula rates and FRP extension provide clarity for capital recovery and credit support; CCNO deemed Ida restoration costs prudent .
Growth pipeline: 61 new electric service agreements in 2023 (~1.3 GW, ~$250M annual adjusted gross margin potential), plus landmark AWS $10B data centers in MS reinforcing load outlook .

What Went Wrong

Cost headwinds: higher operating expenses (depreciation, taxes other than income taxes) and higher interest expense weighed on results; diluted share count also rose YoY .
Q3 2023 saw declines among some existing large industrial customers due to outage timing and sector-specific softness (petrochemicals, paper, ag chemicals), though new/expansion industrials remained strong .
Estimates unavailable: Unable to retrieve Q4 2023 SPGI consensus for ENO/Entergy, limiting precision of “vs. estimates” comparisons (S&P Global access limit reached).

Financial Results

Consolidated EPS and Earnings Trend

Metric	Q2 2023	Q3 2023	Q4 2023
Adjusted EPS ($)	$1.84	$3.27	$0.52
As-Reported EPS ($)	$1.84	N/A	$4.64
Adjusted Earnings ($USD Millions)	$391	N/A	$111
As-Reported Earnings ($USD Millions)	$391	N/A	$988

Q4 YoY EPS Contribution by Segment (per share)

Segment	Q4 2022	Q4 2023
Utility (As-Reported EPS)	$1.15	$3.96
Utility (Adjusted EPS)	$1.09	$1.14
Parent & Other (As-Reported EPS)	($0.64)	$0.67
Parent & Other (Adjusted EPS)	($0.58)	($0.62)
Consolidated (As-Reported EPS)	$0.51	$4.64
Consolidated (Adjusted EPS)	$0.51	$0.52

KPIs and Operating Cash Flow

Metric	Q4 2022	Q4 2023
Operating Cash Flow ($USD Millions)	$776	$1,063
Diluted Avg Shares (Millions)	209	213
Estimated Weather Impact (EPS, $)	$0.00	($0.06)

Notes: Q4 2023 adjusted EPS excludes large non-GAAP adjustments, including a $568M income tax benefit from the 2016–2018 IRS audit resolution and other regulatory items recorded in Q4 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY 2024	N/A	$7.05–$7.35	Initiated
Adjusted EPS	FY 2023	$6.55–$6.85	Narrowed; bottom raised by $0.10	Raised bottom
Utility O&M	FY 2024	N/A	~$2.7B	Return to normal levels
Long-term Adjusted EPS CAGR	Through 2026	6–8%	6–8% reaffirmed	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2023)	Trend
Resilience investment	Texas Resiliency Act enabling filings (Q2); town halls and filings in NO/LA; streamlined solar certification in LA (Q3)	CCNO committee recommended approval of a $110M project (50% GRIP match) and asked ENO to shorten Phase 1 to 3 years; LPSC decision on resilience expected in Q2; PUCT finalized Texas Resilience Act rules	Progressing toward approvals
ENO regulatory clarity	ENO formula rates effective Sep; ENO FRP extended 3 years (Q3)	CCNO certified Ida costs prudent, resolving recovery; continued focus on resilience in NO	Improved clarity
Industrial load growth	Pipeline supportive despite macro headwinds (Q2); robust project pipeline (Q3)	2024 weather-adjusted retail volumes +4% with industrial +8% YoY expected	Strengthening
Data centers / AWS	N/A (Q2); broad interest noted (Q3)	AWS $10B hyperscale data centers in MS, with supportive legislation and cost recovery mechanisms	Ramping
SERI litigation	Settlement progress in AR and MS; FERC orders clarified sale-leaseback/tax positions (Q3)	Active pursuit of settlements with LA/NO; ~2/3 of exposure de-risked via AR/MS	De-risking continues
Clean energy pipeline	E-MS selecting 500 MW from 2022 RFP (Q2)	~$2B owned solar planned; streamlined LA process pursuing up to 3,000 MW	Expanding
Cost discipline / O&M	Continuous improvement and tech (AI/RPA) to hold O&M flat despite inflation (Q3)	Utility O&M planned at ~$2.7B in 2024; ability to flex O&M spend to derisk future periods	Sustained discipline

Management Commentary

“2023 was a year of successful execution… best forced outage rates in a decade, a system that withstood record summer demand” — Drew Marsh (CEO) .
“Our 2023 adjusted EPS was $6.77 in the top half of our guidance range… we plan to invest $20 billion over the next 3 years” — Drew Marsh (CEO) .
“Utility O&M is expected to return to more normal levels at approximately $2.7 billion [in 2024]… our goal is to deliver steady, predictable results” — Kimberly Fontan (CFO) .
“Entergy New Orleans’ new formula rates were approved… council also approved [the] FRP for another 3 years… includes enhancements that support credit” — Drew Marsh (CEO) .
“AWS is investing $10 billion… expected to come online over a 3-year period starting in 2025… legislation provides approval of Entergy Mississippi’s investment… recover carrying costs during construction” — Drew Marsh (CEO) .

Q&A Highlights

Tax audit item cash impact: The large tax adjustment had “no significant cash effect” due to NOLs/tax deposits; adjustments excluded from non-GAAP earnings .
2024 load outlook: Increased sales expectations vs EEI preliminary plan; industrial growth strongest; some 2023 industrial ramp “recapture” of 1–2% implied .
Capex and resilience: 2024–2026 capital increasing with resilience/renewables; resilience base near ~$1B in plan with potential acceleration subject to recovery mechanisms .
SERI settlements: AR settlement followed clearer FERC rulings; active pursuit of similar settlements with LA/NO (timing uncertain; litigated path could be 2+ years) .
Credit metrics: FFO/debt expected ≥14% by YE 2023, aided by debt roll-off and 2022 items rolling off; equity needs through 2024 unchanged .

Estimates Context

Wall Street (S&P Global) Q4 2023 consensus for ENO/Entergy was unavailable during retrieval due to access limits; thus “vs. estimates” comparisons cannot be provided precisely at this time. Values would be retrieved from S&P Global when access is restored.
Given management’s FY 2024 adjusted EPS guidance ($7.05–$7.35) and reaffirmed 6–8% CAGR, sell-side estimates may need upward adjustment for load growth, resilience approvals, and renewables execution once regulatory milestones are finalized .

Key Takeaways for Investors

ENO regulatory footing improved: formula rates and FRP extension enhance visibility on recovery/credit; CCNO Ida cost prudence ruling reduces tail risk .
2024 setup constructive: utility O&M normalizing (~$2.7B) and clear adjusted EPS range ($7.05–$7.35) support steady print potential as resilience/renewables pipeline advances .
Load catalysts: AWS hyperscale data centers and a robust industrial backlog (tech, EV batteries, hydrogen, LNG) imply multi-year rate base growth and stronger volumes benefitting ENO’s service area .
Regulatory milestones as trading catalysts: forthcoming LPSC resilience decision (Q2), PUCT resilience plan in Texas, and potential SERI settlements in LA/NO could rerate risk and cost of capital .
Watch cash/credit: strong OCF and targeted asset sales (gas LDC divestiture) dedicated to debt reduction support credit metrics amid capex step-up .
Execution risks: higher interest/depreciation and inflation require continued O&M discipline; regulatory scope/pace for accelerated resilience remains affordability-sensitive .
Tactical angle: Near-term prints should benefit from normalized O&M and industrial ramp; medium-term thesis rests on resilience approvals and renewables additions translating to rate base and EPS compounding .

Source Documents Reviewed (Q4 2023 and Trend)

Entergy Q4 2023 earnings press release (8-K 2.02): EPS and adjustments, OCF, guidance, ENO/CCNO milestones .
Entergy Q4 2023 earnings call transcript: strategy, load/guidance/outlook; ENO FRP/GRIP; resilience timelines .
Entergy Q3 2023 earnings call transcript: weather lift, capex/settlements, ENO formula rates/FRP .
Entergy Q2 2023 earnings press release (8-K 2.02): FY 2023 guidance; pipeline/regulatory progress .

Other relevant press releases specific to ENO for Q4 2023 were not found in the document catalog.

ENTERGY NEW ORLEANS, LLC (ENJ)·Q4 2023 Earnings Summary