Q1 2026 Entergy Corp Earnings Call

April 29, 2026

Operator 2: Good morning. My name is John. I will be your conference operator today. At this time, I would like to welcome everyone to Entergy's Q1 2026 Earnings Call and Teleconference. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. I will now turn the call over to Liz Hunter, Vice President of Investor Relations for Entergy Corporation. Liz?

Operator: Good morning. My name is John. I will be your conference operator today. At this time, I would like to welcome everyone to Entergy's Q1 2026 Earnings Call and Teleconference. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. I will now turn the call over to Liz Hunter, Vice President of Investor Relations for Entergy Corporation. Liz?

Speaker #2: question, press star one again. I will now turn the call over to Liz Hunter, Vice President of Investor Relations for ENTERGY Corporation. Liz? Good morning.

Liz Hunter: Good morning. Thank you, John, thanks to everyone for joining this morning. We will begin today with comments from Entergy's Chair and CEO, Drew Marsh, and then Kimberly Fontan, our CFO, will review results. In today's call, management will make certain forward-looking statements. Actual results could differ materially from these forward-looking statements due to a number of factors which are set forth in our earnings release, our slide presentation, and our SEC filings. Entergy does not assume any obligation to update these forward-looking statements. Management will also discuss non-GAAP financial information. Reconciliations to the applicable GAAP measures are included in today's press release and slide presentation, both of which can be found on the investor relations section of our website. Now I will turn the call over to Drew.

Speaker #2: I will turn the call over to Thank you, Drew. Thank you, Liz. Good morning, everyone. We had a productive first quarter in which we delivered strong financial results.

Drew Marsh: Thank you, Liz. Good morning, everyone. We had a productive Q1 in which we delivered strong financial results. We launched our Fair Share Plus pledge, and we advanced customer initiatives with the execution of several electric service agreements, including the one with Meta, that improve our financial outlook well into the future. Beginning with financial results, today we are reporting Q1 adjusted earnings per share of $0.86. 2026 guidance remains on track, and we are increasing our already strong adjusted EPS outlooks, driven by 8.5% retail sales growth. Now I'll cover the business updates from the quarter, and as always, I'll start with the customer.

Speaker #2: We launched our fair share plus pledge. And we advanced customer initiatives with the execution of several electric service agreements including the one with Meta, that improve our financial outlooks well into the future.

Speaker #2: Beginning with financial results today, we are reporting first quarter adjusted earnings per share of $0.86. 2026 guidance remains on track, and we are increasing our already strong adjusted EPS outlooks driven by 8.5% retail sales growth.

Drew Marsh: For several years, we've worked with stakeholders to recruit data centers and capture the transformative impact they can have on our communities through investment, jobs, and other support, while at the same time protecting and benefiting existing customers. Earlier this year, we formalized that commitment with the launch of our Fair Share Plus pledge. The Fair Share Plus pledge is a set of guiding principles that ensures that data centers pay their fair share for the power they consume, plus additional benefits for customers and communities. Our pledge aligns with the Ratepayer Protection Pledge that our customers signed with the White House. Fair share is achieved in several ways. Minimum bills and contract length cover incremental costs. Termination provisions ensure current customers avoid unneeded costs. Clean energy terms support a potential future transition, and strong credit terms give us confidence in all of it.

For several years, we've worked with stakeholders to recruit data centers and capture. The transformative impact that can have on our communities through investment jobs and other support.

while at the same time protecting and benefiting existing customers

earlier this year, we formalized that commitment with the launch of our fair share plus pledge.

The Fair Share Plus pledge is a set of guiding principles that ensures that data centers pay their fair share for the power they consume, plus additional benefits for customers and communities.

Our pledge aligns with the ratepayer protection pledge that our customers sign for the White House.

Fair share is achieved in several ways.

Minimum bills and contracts. Length covers incremental costs.

Termination. Provisions ensure current customers avoid unneeded costs.

Drew Marsh: Fair Share also means that data centers cover their portion of fixed costs that our current customers pay for today. The Fair Share portion alone is the source of the estimated $7 billion of benefits we have highlighted, and current customers' bills will be lower than they otherwise would have been because data centers are paying for the incremental infrastructure they need, as well as their share of fixed costs. The plus component is all of the community benefits originally envisioned by our state and local leaders, including well-paying jobs and targeted workforce development, a substantial influx of new support for schools, nonprofits, and other state and community needs, and multiplier effects from new businesses and employment opportunities that come about because of the data centers.

Clean energy term support—a potential future transition and strong credit terms—gives us confidence in all of it.

Fair share also means the data centers covered their portion of fixed costs that our current customers pay for today.

The fair share portion alone is the source of the estimated 7 billion of benefits. We have highlighted

And current customers bills will be lower than they otherwise would have been because data centers are paying for the incremental infrastructure, they need as well as their share of fixed costs.

The plus component is all of the community.

Benefits. Originally envisioned by our state and local leaders.

Including well-paying jobs and targeted workforce development.

A substantial influx of new support for schools, nonprofits and other state and Community needs.

And multiplier effects from new businesses and employment opportunities that come about because of the data centers.

Drew Marsh: The plus component also includes a stronger electric system with reliability and resilience benefits, lower average fuel costs driven by more efficient generation, and specific customer benefits like low income or energy efficiency support. The plus component is clearly valuable, and it is in addition to our estimated $7 billion in customer benefits. We're proud that the framework we committed to more than two years ago is already providing significant benefits for our customers and communities, and those benefits will compound well into the future. I cannot say enough about the tremendous work our employees have done to create this transformative opportunity for our communities while also providing so much value for our existing customers, and we aren't done yet. In late March, we announced a new electric service agreement with Meta for another data center in North Louisiana.

Also includes a stronger Electric System. With reliability and resilience benefits lower average fuel costs driven by more efficient generation and specific customer benefits like low-income or Energy Efficiency support.

The plus component is clearly valuable, and it is in addition to our estimated $7 billion in customer benefits.

We're proud that the framework we committed to more than 2 years ago, was already providing significant benefits for our customers and communities.

And those benefits will compound well into the future.

I cannot say enough about the tremendous work, our employees have done to create this transformative opportunity for our communities while, also providing so much value for our existing customers.

And we aren't done yet.

Drew Marsh: The fair share value from this agreement alone is expected to be $2 billion, which is included in the $7 billion I mentioned. In the plus category, over the next 20 years, Meta has made other commitments. $140 million for energy efficiency programs and $60 million for our Power to Care program. Entergy Louisiana will match Power to Care funding, bringing the increase to $120 million. For context, that is a 5 times annual increase from 2025 levels that will meaningfully improve outcomes for our most vulnerable customers. Shortly after executing the agreement, Entergy Louisiana filed an application with the Louisiana Public Service Commission, requesting approval for assets needed as a result of adding the new Meta data center to the system. The investment includes 7 new combined cycle units, transmission infrastructure, and battery storage facilities.

In late March, we announced a new electric service agreement with meta for another data center in North Louisiana.

The Fair Share value from this agreement alone is expected to be 2 billion dollars, which is included in the 7 billion dollars. I mentioned

In the plus category, over the next 20 years, meta has made other commitments.

140 million for Energy, Efficiency programs and million dollars for our power to Care Program.

Entergy Louisiana will match the Power to Care funding.

Bringing the increase to $120 million.

For context, that is a 5 times. Annual increase for 2025 levels. That will meaningfully improve outcomes for our most vulnerable customers.

Shortly after executing the agreement energy, Louisiana filed an application with the Louisiana Public Service Commission, requesting approval for assets needed, as a result of adding the new metadata Center to the system.

Drew Marsh: The cost of the proposed facilities will be covered by payments from Meta, whether from their tariff or other contributions. All customers will realize reliability and resilience benefits and lower fuel costs from these investments. We also agreed to pursue another 2.5 gigawatts of renewables and further investigate CCS, nuclear uprates, and new nuclear to support Meta's clean energy goals. We'll add projects to the plan as assets are identified. This month, the commission affirmed that our request falls under their new LPSC Lightning Initiative, and they directed that the procedural schedule should support a decision at the December B&E meeting. The commission's Lightning Initiative is part of Governor Landry's Project Lightning Speed to support economic development that provides significant benefits to state and local communities.

The investment includes seven new combined cycle units, transmission infrastructure, and battery storage facilities.

The cost of the proposed facilities will be covered by payments from meta whether from their tariffs or other contributions. Yet all customers will realize reliability and resilience benefits and lower fuel costs from these Investments.

We also agreed to pursue another 2.5 gigawatts of renewables and further investigate CCS, nuclear uprates, and new nuclear to support Meta's clean energy goals.

We'll add projects to the plan as assets are identified.

This month.

The commission affirmed that our request falls under their new Louisiana Lightning initiative.

And they directed that the procedural schedule should support a decision at the December biennial meeting.

The commission's lightning initiative is part of Governor Landry's project, lightning speed.

To support Economic Development to provide significant benefits to State and local communities.

Drew Marsh: We are requesting approval for more than $15 billion in capital, with about $14 billion in our 4-year plan. As a result of the agreement and pending the approval request, we're also raising our sales and adjusted EPS outlooks. Kimberly will discuss in more detail. Beyond the Meta agreement, so far this year, we have signed ESAs totaling over 1,000 MW. These agreements were from multiple industries across all our operating companies, and they indicate that customer growth beyond data centers remains robust in our region. We also continue to receive data center interest within our service area. After all agreements signed to date, including the recent agreement with Meta, we still have a pipeline of 7 to 12 GW of potential data center customers that are not in our plan. Moving beyond the customer growth update, I'd like to cover a few more items.

We are requesting a approval for more than 15 billion dollars in capital with about 14 billion dollars and our 4-year plan.

As a result of the agreement.

And pending the approval request.

We're also raising our sales and adjusted EPS outlooks.

Kimberly will discuss in more detail.

the on the Met agreement so far this year, we have signed esa's totaling over 1,000 megawatts,

These agreements were from multiple Industries across all our operating companies, and they indicate that customer growth Beyond data centers remains robust in our region.

We also continue to receive data center interests within our service area.

after all agreements signed to date, including the recent agreement with Meta,

We still have a pipeline of 7 to 12 gigawatts of potential data center customers that are not in our plan.

Moving beyond the customer growth update. I'd like to cover a few more items.

Drew Marsh: Operational excellence remains a key focus area, and we will talk in more detail about that at Investor Day. For today, I will share a couple of highlights. Orange County Advanced Power Station achieved its first fire milestone, bringing it one step closer to delivering reliable power for our customers in Texas. We expect the plant to be fully online in late summer. Recently, our power delivery team identified more than $30 million in capital savings on the Commodore to Churchill 230 kV project. Our engineers developed a solution which improved the design, lowered materials costs, and enabled faster cover customer delivery. Importantly, the improvement can be applied to future large transmission projects. This kind of innovative thinking, combined with the scale of our capital plan, will continue to lower costs for customers and unlock additional customer investment opportunities.

Operational excellence remains a key Focus area and we will talk in more detail about that at investor day.

For today, I'll share a couple of highlights.

Orange County Advanced Power Station achieved. Its first fire Milestone, bringing it 1 Step Closer to delivering reliable power for our customers in Texas.

We expect the plant to be fully online in late summer.

Recently, our power delivery team identified more than 30 million dollars in Capital Savings on the Commodore to Churchill 230 KB project.

And enabled faster, Co customer delivery.

Importantly, the improvement can be applied to future large transmission projects.

Will continue to lower costs for customers and unlock additional customer investment opportunities.

Drew Marsh: Entergy Texas is working to expand its spinning generation capacity to serve a growing customer base. Following the commission's feedback, they issued an RFP in February for combined cycle combustion capacity and energy. Across our system, we continue to expand our renewables portfolio, driven by our customers' desire for clean energy options. We have active RFPs for more than 1,600 MW of renewables and storage, and we have over 4,500 MW of renewables and storage in various stages of negotiation after selections from prior RFPs in Arkansas, Louisiana, and Mississippi. Roughly two-thirds of the megawatts in negotiation would be owned. In addition, we are actively managing proposals through Louisiana's accelerated renewable review process. These are important tools to help us identify projects supporting customers' clean energy goals.

Entry taxes.

Is working to expand its spending generation capacity to serve a growing customer base.

Following the Commission’s feedback, they issued an RFP in February for combined cycle, combat capacity, and energy.

Across our system, we continue to expand our renewables portfolio, driven by our customers' desire for clean energy options.

We have active rfps for more than 1600, megawatts of Renewables and Storage.

And we have over 4,500 megawatts of Renewables and storage in various stages of negotiation. After selections from prior rfps and Arkansas, Louisiana and Mississippi.

Roughly 2/3 of the megawatts in negotiation would be owned.

In addition, we are actively managing proposals through Louisiana's accelerated renewable review process.

These are important tools to help us identify projects supporting customers' clean energy goals.

Drew Marsh: As we indicated on the previous earnings call, Entergy Arkansas filed its base rate case in late February, requesting a $45 million rate change, which is less than 2%. Because bill impacts vary by customer type, the residential impact would be less than 1%. Some of the features that we requested include an optional time-of-use rate that provides residential customers with the opportunity to lower bills by shifting energy use to lower cost hours and low-income rates that provide a 50% discount on the customer charge for households that qualify for LIHEAP assistance. We also elected to resume Entergy Arkansas's four-test year FRP after the rate case is resolved. Entergy Mississippi filed its annual formula rate plan with no change requested.

As we indicated on the previous earnings call, Entergy Arkansas filed its base rate case in late February, requesting a $45 million rate change, which is less than 2%.

Because Bill impacts vary by customer type, the residential impact would be less than 1%.

Some of the features that we requested include an optional time-of-use rate that provides residential customers with the opportunity to lower bills by shifting energy use to lower-cost hours.

And low-income rates that provide a 50% discount on the customer charge for households that qualify for LIHEAP assistance.

We also elected to resume energy Arkansas's for test your FRP. After the rate case is resolved,

Energy. Mississippi filed, its annual formula rate plan with no change. Requested,

Drew Marsh: Arkansas and Mississippi both have mechanisms that provide cash allowance for funds used during construction for investments to support significant economic development projects. To that end, Entergy Arkansas filed its first annual Generating Arkansas Jobs Act rider in March, and Entergy Mississippi updated its interim facilities rate adjustment in January. One additional comment about Mississippi, the state recently passed legislation authorizing securitization of costs associated with Winter Storm Fern. Kimberly will provide additional details on that as well. Beyond Fair Share Plus, our employees continue to work every day for the benefit of the communities we serve. We recently participated in the industry's LIHEAP Action Day in Washington, DC to advocate for energy affordability for our customers in need. Congress approved an appropriations package that includes a $20 million increase for LIHEAP, which reflects growing recognition of the program's importance.

Arkansas. Mississippi both have mechanisms that provide cash allowance for funds used during construction for Investments, to support significant Economic Development projects.

To that end. Energy Arkansas filed, its first annual generating Arkansas jobs, act Ryder in March

And energy, Mississippi updated its interim facilities rate adjustment in January.

1 additional comment about Mississippi.

The state recently passed legislation authorizing security of costs associated with winter storm fern.

Kimberly will provide additional details on that as well.

Beyond fair, share Plus

Our employees continue to work every day for the benefit of the communities we serve.

we recently participated in the industry's LI Heap action day in Washington DC to advocate for energy, affordability for our customers in need

Congress approved an appropriations package that includes a $20 million increase for LIHEAP, which reflects growing recognition of the program's importance.

Drew Marsh: For more than 15 years, Entergy has also provided free tax preparation for low to moderate income customers at sites throughout Entergy's region. In 2025, we helped customers receive $54 million in earned income tax credits, putting money directly into our customers' pockets. Finally, we are very excited about our upcoming Investor Day in June. Plan to walk through the clear line of sight for our multi-year strategy and outlooks in detail. You'll hear directly from our leadership team on the opportunities ahead. Highlights will include a conversation with large customers on how we partner together to create better outcomes for our key stakeholders. A view into our operational strategy to successfully execute on the large build cycle ahead of us. A discussion of the work we are doing to unlock additional capital deployment opportunities. A review of our approach to maintaining financial discipline.

For more than 15 years, Entergy has also provided free tax preparation for low- to moderate-income customers at sites throughout Entergy’s region.

And in 2025, we helped customers receive $54 million in earned income tax credits, putting money directly into our customers' pockets.

Finally, we are very excited about our upcoming investor Day in June.

Plan to walk through the clear line of sight for our multi-year strategy and outlooks in detail.

And you'll hear directly from our leadership team on the opportunities ahead.

Highlights will include a conversation with large customers on how we partner together to create better outcomes for our key stakeholders.

A view into our operational strategy to successfully execute on the large build cycle ahead of us.

A discussion, a discussion of the work we are doing to unlock additional Capital deployment opportunities.

Drew Marsh: Finally, a deeper dive into the significant near and long-term customer growth opportunities to sustain our strong growth well beyond our five-year outlook. We've had a productive start to 2026 with solid progress and execution across the business. By continuing to put our customers first, we will deliver premium value to each of our key stakeholders. We look forward to discussing this in more detail with you at our Investor Day. I'll now turn the call over to Kimberly for the financial update.

A review of our approach to maintaining fin Financial discipline and finally, a deeper dive into the significant near and long-term customer growth opportunities to sustain our strong growth. Well, beyond our 5 year outlook,

We had a productive start to 2026 with solid progress and execution across the business.

And by continuing to put our customers first, we will deliver premium value to each of our key stakeholders.

We look forward to discussing this in more detail with you at our Investor Day.

Kimberly Fontan: Thank you, Drew. Good morning, everyone. I will now review our financial results and provide an update on our long-term outlooks. Our results for the quarter were straightforward. Our adjusted EPS was $0.86, as shown on slide 4. The primary drivers were from the effects of investments made for our customers, including regulatory actions net of higher depreciation expense, taxes other than income taxes, and interest expense from financing capital expenditures. The per-share increase was partially offset by a higher share count from settling equity forwards. Industrial sales growth was very strong at 15% as new and expansion projects continued to ramp up their operations. Overall retail sales increased 6%. The earnings contribution from retail sales growth was essentially neutral as higher revenue from the industrial growth was offset by the effects of weather, including positive weather in Q1 of last year.

I'll now turn the call over to Kimberly for the financial update.

you our financial results and provide an update on our long-term outlooks,

Our results for the quarter were straightforward. Our adjusted EPS was $0.86, as shown on slide 4.

The primary drivers were from the effects of investments made for our customers, including regulatory actions, net of higher depreciation, expense taxes. Other than income taxes and interest expense from financing capital expenditures, the per share increase was partially offset by a higher share count from settling equity forwards.

Industrial sales growth was very strong at 15%, as new and expansion projects continue to ramp up their operations.

Overall, retail sales increased 6%.

Kimberly Fontan: As Drew discussed, the Meta contract creates significant customer and community benefits. We are refreshing our outlooks to reflect the new agreement and other minor updates. The highlights are summarized on slide 5. This agreement further strengthens our retail sales outlook. We now expect approximately 8.5% compound annual retail sales growth through 2029, driven by 16% industrial growth. Data centers continue to be a significant driver, along with growth from a variety of traditional Gulf South industries, including LNG, industrial gases, petrochemicals, agricultural chemicals, and primary metals. As a reminder, we only add hyperscale data centers to our plan once we have a signed electric service agreement, and then we include them at minimum bill levels. This conservative approach ensures that we can count on the revenue that we've included in our plan.

The earnings contribution from retail sales growth was essentially neutral as higher revenue from the industrial growth was offset by the effects of weather, including positive weather in the first quarter of last year.

As Drew discussed the meta contract, creates significant customer and Community benefits.

In addition, we are refreshing, our outlooks to reflect the new agreement and other minor updates.

The highlights are summarized on slide 5.

This agreement further strengthens our retail sales Outlook. We now expect approximately 8 and a half percent compound annual retail sales growth through 2029 driven by 16% industrial growth.

Data centers continue to be a significant driver, along with growth from a variety of traditional Gulf South industries, including LNG, industrial gases, petrochemicals, agricultural chemicals, and primary metals.

As a reminder, we only add hyperscale data centers to our plan once we have an assigned electric service agreement, and then we include them at minimum bill levels.

Kimberly Fontan: Our customer-centric 4-year capital plan is now $57 billion, which is $14 billion higher than our plan last quarter. The increase includes the investment needs resulting from the new customer agreement, primarily 7 new CCCTs, as well as battery storage projects. All 7 CCCTs have in-service dates in 2030 and 2031, such that not all of the capital for these units is in our 4-year horizon. For the transmission investments in the filing, we've made a conservative assumption not to include them as we work through financing options. We have also not yet included the renewables or Riverbend nuclear upgrade investments discussed in our filing. These would be added to the plan as specific projects are firmed up.

This conservative approach ensures that we can count on the revenue that we've included in our plan.

Our customer-centric four-year capital plan is now $57 billion, which is $14 billion higher than our plan last quarter.

The increase includes the investment needs resulting from the new customer agreement. Primarily 7 news ccc's, as well as battery storage projects.

All seven CCs have in-service dates in 2030 and 2031, such that not all of the capital for these units is in our four-year horizon.

For the transmission investments in the filing. We've made a conservative assumption not to include them. As we work through financing options, we have also not yet, included the Renewables

Or Riverbend nuclear upgrade Investments.

These would be added to the plan as specific projects are firmed up.

Kimberly Fontan: The equity associated with our 4-year plan is now $6.6 billion at the lower end of our target range of 10% to 15% of the total capital plan. Our strategy to be proactive in addressing our equity needs provides certainty and flexibility, giving us ample time to raise capital. We have successfully sold forward contracts through our robust ATM program as well as the block transaction we executed last March. The agreements we have in place cover about 30% of our 4-year need. With $1.9 billion already contracted, that leaves $4.7 billion to be sourced, which is not expected to be needed until late 2027 through 2029. Our forecast also includes $3 billion of hybrid instruments at parent. Slide 6 summarizes our credit ratings and affirms that our credit metric outlooks remain better than rating agency thresholds.

the equity associated with our 4 year plan is now

In charge of 10% to 15% of the total capital plan.

Our strategy to be proactive.

We have successfully sold four contracts through our robust ATM program, as well as the block transaction we executed last March.

The agreements we have in place cover about 30% of our four-year need, with $1.9 billion already contracted. That leaves $4.7 billion to be sourced, which is not expected to be needed until late 2027 through 2029.

Our forecast also includes 3 billion dollars of hybrid instruments of parents.

Kimberly Fontan: Our plan reflects FFO to debt at or above 15% for Moody's metric throughout the period, giving us capacity to manage events in the business as they occur. Our financial health is bolstered by the work we've done to strengthen our balance sheet and create benefits for customers, including structuring large agreements to protect existing customers and our credit, solidifying our pension-funded status, and receiving constructive regulatory mechanisms. You may recall our system experienced an ice storm earlier this year. Mississippi's recent legislation provides a path to securitize the storm cost, which we estimate in the $200 million range. This will lower the overall cost for customers. We will submit our filing by 5 October, and we expect the commission to issue a decision within 60 days of our filing.

Slide 6 summarizes our credit ratings and affirms that our credit metric outlooks remain better than rating agency thresholds.

Our plan reflects ffo to debt at or above 15% for Moody's, metrics throughout the period, giving us capacity to manage events in the business as they occur.

While financial help is bolstered. By the way, we buy the work, we've done to strengthen our balance sheet and create benefits for customers including structuring large agreements, to protect existing customers. And our credit,

Solidifying, our pension funded status and receiving constructive regulatory mechanisms.

Days of our filing.

Kimberly Fontan: As shown on slide 7, we are affirming our 2026 adjusted EPS guidance and updating our outlooks. For 2026, we're firmly on track, and we remain confident that we will deliver on our guidance. Looking ahead to Q2, with other movements in our plan, we expect other O&M to be approximately $0.15 higher than the same Q2 last year, reflecting higher vegetation spending and the timing of nuclear maintenance. Beyond 2026, today's update reflects our new capital plan, which includes investment resulting from the latest customer agreement, as well as other updates since Q3. Our adjusted EPS outlook for next year is now $0.20 higher. As the investment accumulates, the increase grows ratably to $0.50 in 2029 to $6.40. We will extend our full outlook to 2030 at our Investor Day in June.

As shown on slide 7, we are affirming our 2026 adjusted EPS guidance and updating our outlooks.

For 2026. We're firmly on track and we remain confident that we will deliver on our guidance.

Looking ahead to the second quarter with other movements. In our plan, we expect other onm to be approximately 15 cents higher than the same quarter last year reflecting higher vegetation spending and the timing of nuclear maintenance.

Beyond 2026. Today's update reflects our new capital plan which includes investment resulting from the latest customer agreement, as well as other updates since the third quarter.

Our adjusted EPS outlook for next year is now 20 cents. Higher as the investment accumulates, the increase grows rapidly to 50 cents in 2029 to 6 dollars.

Kimberly Fontan: As a preview, the 2028 to 2029 year-over-year adjusted earnings per share growth was 12%. We expect approximately the same for 2030. Entergy is executing a differentiated growth strategy, delivering strong, sustainable results. Through our disciplined customer-centric approach, we are creating value for all our key stakeholders, including our owners. Our plan is solid, with clear line of sight to achieve our outlooks, and we have significant opportunities before us. This update makes our already strong growth profile stand out even more. Now we're happy to take your questions.

We will extend our full outlooks to 2030 at our Investor Day in June.

As a preview, the 2028 to 2029 year-over-year adjusted earnings per share growth was 12%. We expect approximately the same for 2030.

Energy, is executing a differentiated growth strategy, delivering strong, sustainable results. Through our disciplined customer Centric approach. We are creating value for all our key stakeholders, including our owners.

Our plan is solid with clear line of sight to achieve our outlooks and we have significant opportunities before us.

This update makes our already strong growth profile. Stand out even more.

And now we're happy to take your questions.

Operator 2: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. At this time, I would like to remind everyone in order to ask a question, please press star followed by the number one on your telephone keypad. Again, press star one if you'd like to ask a question. In the interest of time, we ask that you please limit your questions to one primary and one follow-up question. We'll pause for a moment to compile the Q&A roster. Thank you. Our first question comes from the line of Shar Pourreza with Wells Fargo. Please go ahead.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. At this time, I would like to remind everyone in order to ask a question, please press star followed by the number one on your telephone keypad. Again, press star one if you'd like to ask a question. In the interest of time, we ask that you please limit your questions to one primary and one follow-up question. We'll pause for a moment to compile the Q&A roster. Thank you. Our first question comes from the line of Shar Pourreza with Wells Fargo. Please go ahead.

Thank you, ladies and gentlemen, we will now begin the question and answer session. At this time, I would like to remind everyone in order to ask a question. Please press star. Followed by the number 1 on your telephone keypad again. Press star 1, if you'd like to ask a question in the interest of time, we ask that you please limit your questions to 1 primary and 1. Follow-up question. We'll pause for a moment to compile the Q&A roster. Thank you.

Shar Pourreza: Hey, guys. Good morning.

Our first question comes from the line of sharp reso with Wells Fargo, please go ahead.

Drew Marsh: Morning, Shar.

Hey guys. Good morning.

Shar Pourreza: Morning, Drew. Obviously a great update this quarter with the Meta deal. Drew, I just want to be crystal clear here as today's results just kind of raised the bar again. Does the CapEx increase today fully support the deal, or do you see additional CapEx and earnings accretion as we shift focus to the Analyst Day? I mean, you just had a strong update, should we assume there could be further updates to the capital plan in addition to the roll forward, in the June day, Analyst Day? Thanks.

Morning morning, sir.

Morning, true. Um, so obviously a great update this quarter with the Meta deal. I just want to be crystal clear here, as today's results just kind of raised the bar again. Um, does the capex increase today fully support the deal, or do you see additional capacity and earnings accretion as we shift focus to the analyst day? I mean, you just had a strong update—uh, social.

Kimberly Fontan: Yeah. Good morning, Shar. It's Kimberly. As I noted.

Should we assume there could be further updates to the capital plan, in addition to the roll forward, uh, at the June Analyst Day? Thanks.

Shar Pourreza: Good morning.

Kimberly Fontan: Good morning. $14 billion was added to the plan. The filings had about $15 billion, and the CCCTs closed outside the period. What's not in the plan is the renewables that are under the agreement as well as some of the nuclear pieces. Certainly there is more opportunity both in the period and beyond. What we've provided here today is largely around the generation pieces that you see in the filing.

Drew Marsh: What we would probably expect for our Investor Day through 2029, because it's only 6 weeks away. It's a very short window. We try to give you a preview of it this time today.

Shar Pourreza: Got it. Got it. That's perfect. Just lastly, in terms of financing, I guess, what are the specific mechanisms that keep incremental equity funding for the $15 billion in new CapEx under 20%? Is that something that would get replicated beyond the current CapEx plan? I mean, most of the new investment is in Louisiana, but do you see the same accretion from DC clustering in Arkansas and Mississippi? Thanks.

Yeah. Good morning, shards Kimberly. As I noted 14 that morning. 14 billion was added to the plan, the 4, the filings had about 15 billion and the ccc's clothes outside the period. But what's not in the plan is the Renewables that are under the agreement, as well as some of the nuclear pieces. So certainly there is more opportunity, both in the period and Beyond. Um, but what we've provided here today is, is largely around the Generation Um, pieces that you see in the filing and and and what we would probably expect for our investor day through 29, uh, because it's, it's a, it's only 6 weeks away. It's a very short window. Um so we we try to give you a preview of it this time.

Kimberly Fontan: Yeah. We've been able to maintain that 10% to 15% rate on our capital plan for some time, and I don't see any factors that change that. There's a number of factors that help support that, whether it's the mechanisms that we have, the forward mechanisms, the recovery of AFUDC during the construction period. I mentioned funding of our pension status. It's a variety of mechanisms, but no fundamental structural change that I see that causes that to really shift as we think about new capital.

Today got it. Got it. Uh, that's perfect. And then just lastly, in terms of financing because what are the specific mechanisms that keep increment? Incremental Equity funding for the 15 billion in new capex. Under 20%, is that something that would get replicated beyond the current capex plan? I mean, most of the new investment is in Louisiana, but do you see the same accretion from DC clustering in Arkansas on this Mississippi? Thanks.

Yeah, we've been able to maintain that 10 to 15% rate on our Capital plan for some time. And I don't see any factors that change that there's a number of factors that help support that, whether it's the mechanisms that we have, the forward mechanisms that the recovery of afdc during the construction period, I mentioned uh, funding of our pension status. So it's a variety of mechanisms but no fundamental structural change that I see that causes that to really shift as we think about new capital.

Shar Pourreza: Okay, that's perfect. Thank you, guys, and big congrats. You keep raising the bar for the industry. Thanks.

Drew Marsh: Thanks, Shar.

Okay, that's perfect. Thank you, guys. And, uh, big congrats—you keep raising the bar for the, uh, for the industry. Thanks.

thanks, sh

Operator 2: Our next question comes from the line of Nicholas Campanella with Barclays. Please go ahead.

Operator: Our next question comes from the line of Nicholas Campanella with Barclays. Please go ahead.

Please go ahead.

Nicholas Campanella: Hey, good morning. Productive quarter, like you said, so thanks for all the updates.

Hey, good morning. Uh, productive quarter like you said.

Nicholas Campanella: Good morning.

Drew Marsh: Good morning.

Nicholas Campanella: I just wanted to follow up on some of your prepares. You said that you have a pipeline of 7 to 12 gigawatts that are still not in the plan. You used to have this nice slide around EEI, which kind of showed how much equipment you secured to facilitate growth above the plan. Can you just kind of talk about after this Meta announcement, after the other 1 gigawatt that you highlighted as well that you executed on in the quarter, what is the equipment outlook look like for you now? Thank you.

So thanks for all the updates.

Um, so I just wanted to follow up on some of your preparedness. You said that you have a pipeline of 7 to 12 gigawatts.

Uh that are still not in the plan. You used to have this nice slider on EI which kind of showed how much equipment you secured to facilitate growth above the plan. So can you just kind of talk about after this meta announcement after the other gigawatt, that you highlighted as well that you executed on in the quarter? What is the, um,

Kimberly Fontan: Hey, Nick, it's Kimberly. Appreciate the question. Yes, Drew did confirm that even after this agreement, our pipeline is still 7 to 12. That underscores the fact that we continue to see that pipeline, things move through the pipeline and that pipeline refresh. From an equipment perspective, we'll give you a full update in just a few weeks at Investor Day. We have additional turbines both on that slide, and we're not standing still relative to continuing to ensure that we can support that incremental growth as well as we'll talk about what else is out there relative to all of our other industrial customers in just a few weeks.

Uh, the equipment outlook look like for you now. Thank you.

Hey Nick, it's Kimberly. Appreciate the question. Yes. Drew did confirm that even after this agreement, our pipeline is still 7 to 12 and that underscores, the fact that we continue to see that pipeline things, move through the pipeline and that pipeline refresh from an equipment perspective. We'll give you a full update in just a few weeks at investor day, but we have additional turbines, both on that side. And we're not staying in still relative to continuing to ensure that we can support. That incremental growth, as well as we'll talk about what else is out there, relative to our all of our other industrial customers um, in just a few weeks.

Nicholas Campanella: Okay. Thank you. Looking forward to that. You know, there was some discussions in the filing at the regulator about exploring kind of new large scale nuclear studies at certain sites. Drew, just maybe given your involvement in NEI, you know, maybe can you kind of talk about where the company stands on committing to large scale nuke at this point, what the industry still needs to move forward and what Entergy would need to kind of move forward? Is this something that we should be keeping in mind as we kind of get to this Analyst Day update? Thank you.

Okay, thank you. Looking forward to that. And, um,

You know, uh, there was some discussions, uh, in the filing at the regulator about exploring kind of new large-scale, nuclear studies at certain sites, um, and and Drew, just maybe giving your involvement in Nei, you know? Maybe can you kind of talk about where the company stands on committing to large-scale Nuke? At this point? What the industry still needs to move forward and what energy would need to kind of move forward? And is this is, is this something that we should be keeping in mind as we kind of get to this? This analyst day update. Thank you.

Drew Marsh: Thanks, Nick. Certainly new nuclear is something that we believe we will need when we look out into the long term. Certainly, you know, we've talked about this in the past. We don't think we'll get to something like 2050 without having new nuclear as part of our portfolio. It's something that we are continuing to actively explore and investigate. The agreement that we signed with Meta helps move that forward a little bit. We are in the same spot from a financial risk perspective that we always have been. That is that there is significant challenges that we still have to overcome from a cost and a cost uncertainty perspective.

All right, thanks. Nick. The certainly new nuclear is something that we believe we will need when we look out into the long term, certainly, you know we've talked about this in the past, we don't think we'll get to something like 2050 without having new nuclear as part of, uh, our portfolio. Um, so it's something that we are continuing to actively explore, uh, and investigate and the, the the agreement that we signed with, with meta helps move that forward, uh, a little bit. Um, we are in the same spot from, uh, from a Financial Risk perspective that we always have been, uh, and that is that there is significant, uh,

Drew Marsh: We are mindful of what that could mean to the balance sheet of Entergy Louisiana or any of our operating companies. We aren't going to enter into any agreement that creates an existential risk right off the bat. We've said that many times. At our Investor Day, we'll have some ideas about how we could manage that and how we could move the needle on the cost and the risk associated with construction that could help us get there. Our balance sheet isn't big enough to cover the whole risk by ourselves, and we're aware of that.

The challenges that we still have to overcome from a from a cost and a cost to uncertainty uh perspective. Uh and we are mindful of what that could mean to the balance sheet of energy, Louisiana or any of our operating companies. So we we aren't going to enter into any agreement that that uh creates an existential risk. Uh, right off the bat. And we've said that many times at our investor day, we'll have some ideas about how we could manage that and how we could move the needle on the costs. And the and the risk, uh, associated with construction. Uh, that could help us get there. Um, but our balance sheet is a big enough to cover the whole Risk by ourselves and and we're aware of that.

Nicholas Campanella: Thank you.

Drew Marsh: Thank you.

Thank you.

Operator 2: Our next question comes from the line of Jeremy Tonet with JPMorgan. Please go ahead.

Operator: Our next question comes from the line of Jeremy Tonet with JPMorgan. Please go ahead.

Thank you.

Our next question comes from the line of Jeremy tet with JP Morgan. Please go ahead.

Diana Niles: Hi. Good morning. This is Diana Niles on the call for Jeremy. Thanks for taking my questions today.

Drew Marsh: Absolutely. Good morning.

Hi, good morning. This is Diana. Niles on the call for Jeremy. Thanks for taking my questions today.

Diana Niles: Good morning. I was hoping, could you elaborate on the 1,000 MW of additional ESAs beyond the Meta agreement and maybe how you would characterize the kind of industrial breakdown there and ramp going forward?

Absolutely good morning.

Good morning. Uh, so I was hoping could you elaborate on the thousand, megawatts of additional, esa's beyond the um, meta agreement, and maybe how you would characterize the, um, the kind of industrial breakdown there, um, and ramp going forward.

Drew Marsh: Yeah, they're things that you're familiar with, steel, petrochems. I don't have a specific by industry breakdown. Lots of smaller ones. You know, there's many that are in the, you know, less than 20 MW kind of range. Altogether, they add up to 1,000 MW. I don't have a specific breakdown for you.

Um yeah, there are things that you're familiar with uh, steel Pro cams. I don't have a specific, my industry uh breakdown. Um, lots of smaller ones, you know there's there's many that are in the, you know, less than 20 megawatts kind of range. Uh but uh, all together they add up to a thousand megawatts. I don't have a specific breakdown for you.

Diana Niles: Got it. Thank you.

Drew Marsh: I will also add one other thing that I just got reminded of here in the room. We probability weight those non-data centers projects. Those are still probability weighted. They're not all in at 100%. As Kimberly noted in her remarks, the data centers only go in whenever we have a signed ESA.

Diana Niles: Got it. Thank you. To maybe clarify there could be upside should the more traditional industrial load all come on at the full capacity?

Got it. Thank you. And and I will also add, uh, 1 other thing that, uh, I, I just got reminded of here in the room. Uh, we probably wait, uh, those non-data centers, um, uh, projects. So, those are still probability weighted. They're not all in at 100%. Um, and as a as kimberli noted, uh, in her remarks, the data centers, only go in whenever we have a signed ESA.

Got it. Thank you. Um,

so, to make

Verify there. There could be upside should the, um, more traditional industrial load, um,

Drew Marsh: That is true. That is correct. If they were all to come on. It's probability weighted for a reason because that doesn't usually happen.

All come on, um, at the full capacity.

Diana Niles: Right

Drew Marsh: If they were all to come on, yes, there would be upside.

Diana Niles: Right

Drew Marsh: If they were all to come on, yes, there would be upside.

Diana Niles: Got it. Thank you. Maybe to piggyback on the prior question, and apologies if you already spoke to it and I didn't hear, I saw that the study in the Meta agreement speaks to AP1000s. Was that selection of technology a preference from Entergy or from the customer?

That is correct. If it were all to come on the probability weighted for a reason because that doesn't usually happen. But if they were all come on yes there would be upside

Got it. Thank you. Um, and maybe to to piggy back on the prior question and apologies, if you already spoke to it and I didn't hear. Um, but I saw that there were the study um, in the meadow agreement speaks to AP 10000 um was that selection of Technology a preference from energy or um, from the customer

Drew Marsh: Well, we are supportive of any of the technologies that are out there, and we're investigating and talking with the vendors for all kinds of different technologies. Certainly the AP1000 is one that has been constructed and built and that there is a full design. And it's also a technology that we're familiar with because it's, you know, PWR. I think those are things that we are comfortable with. I think there's some benefits associated with that. We are more or less agnostic to the technology. What we're more concerned about is the risk-sharing for construction.

Um, well, we are supportive of any of the of the technologies that are out there and we're investigating, um, and talking with uh, the, the vendors for all kinds of different Technologies. Uh, certainly the ap1000 is 1. That is

Has been constructed and built, and that there is a full design. Um, and it's also a technology that we're familiar with because it's, uh, you know, a bwr. So I think those are things that, um, we are, uh, that we are comfortable with, uh, and, um,

And so I think there's there's some benefits associated with that, uh, but we are more or less agnostic to the technology. What we're more concerned about is the risk sharing, um, for construction,

Diana Niles: Got it. Thank you. Appreciate that.

Drew Marsh: Thanks.

Got it. Thank you. Appreciate that.

Operator 2: Our next question comes from the line of Richard Sunderland with Truist Securities. Please go ahead.

Operator: Our next question comes from the line of Richard Sunderland with Truist Securities. Please go ahead.

Richard Sunderland: Hey, good morning. Thanks for the time today.

Drew Marsh: Hey, good morning.

Richard Sunderland: Speaking of some of those other CapEx elements for Meta that are outside of the plan, could you speak a little bit more to sort of guardrails, timing, other elements you have an eye to before you would go and add those to the plan? Then I guess similarly on the, on the size and scope, I know the transmission you outlined, but, what are you thinking about as a, as an order of magnitude on the other buckets? Thank you.

Our next question comes from the line of Richard Sunderland with truist Securities. Please go ahead.

Hey, good morning, thank you for the time today.

Hey, good morning.

Um, speaking with some of those other capex elements for meta that are outside of the plan, could you speak a little bit more to sort of guard rails timing? Other elements, you have an eye to before you would go and add those to the plan and then I guess similarly on the, on the side and scope, I know the transmission you outlined but um, you know, what are you thinking about? As a, as an order of magnitude on the other buckets. Thank you.

Kimberly Fontan: Good morning, Richard. Certainly we saw Meta, as well as other customers have made commitments or signed up for new solar in, you know, multiple gigawatt amounts. We do have open RFPs to fill those, as well as we're looking at, you know, our own self-builds that we would put into those RFPs to fill that. We would be looking to fill that, you know, over the next several years. You could see some of that come into this four-year plan, and you could see some of it stretch a little bit beyond that.

Kimberly Fontan: From a, you know, from a size and scope perspective, 2,500 megawatts in this Meta agreement, 1,500 megawatts in the previous agreement, all provides a good framing around incremental solar that we could have, and then you could have incremental in other areas as well. I said solar, but it could also be batteries as well.

Are signed up for new solar. And, you know, multiple, um, gigawatt amounts. Um, we do have open RFPs to, um, build those, as well as we're looking at, you know, our own self-builds that we would put into those RFPs to fill that. And we would be looking to fill that, you know, over the next several years. So you could see some of that come into this 4-year plan and you could see some of it stretch a little bit beyond that. But from a, you know, from a size and scope perspective, 2,500 megawatts in this, um, meta agreement; 1,500 megawatts.

You know, that's in the previous agreement, all provides a good framing around incremental solar that we can have and then you can have incremental in other areas as well. And I I said solar but it could also be batteries as well.

Richard Sunderland: Got it. Thank you. That's helpful context. Just turning back to the 7 to 12 gigawatt backlog, I'm curious if the Meta additions today, did that move through the backlog, so you then, you know, backfilled with new interest to get back to the 7 to 12 gigawatts? Even on the industrial side, just like how have some of those trends been relative to crystallizing the 1,000 megawatts that you also referenced today? If you could provide any color there. Thank you.

Kimberly Fontan: Yeah. On the seven to 12, you're exactly right. Meta would have moved through that. It's now in our plan, it's not in the seven to 12 because that references data center opportunity that's outside of our plan. You know, our seven to 12 was never our full scope of plan. As things move through, we've got additional things coming in, as well as we've had additional interest. On the broader customers, what Drew referenced on the 1,000 MW is really closing out specific customers that either getting them to signed agreements, which would adjust the probabilities as well. We'll give you a full update on that pipeline again in a few weeks, but that continues to be strong as well.

Got it, thank you. That's helpful context. And then just turning back to the 7th at 12:00, people at backlog—I'm curious if the, um, the Meta addition today, did that move through the backlog, and so you then, you know, backfilled with new interest to get back to the 7 to 12 gigawatts? And then even on the industrial side, just, like, how have some of those trends been relative to crystallizing the 1,000 megawatts that you also referenced today? If you could provide any color there, thank you.

Data center opportunity, that's outside of our plan. Um we you know, our 7 to 12 was never our full scope of plan. So if things move through, we've got additional things coming in, as well as we've had additional interest on that broader customers what Drew referenced on the thousand megawatts is really closing out specific customers that either getting them to sign agreements which would adjust the probabilities as well. But we'll give you a full update on that pipeline again in a few weeks but that continues to be strong as well.

Richard Sunderland: Great. Thank you. Looking forward to the updates.

Great. Thank you. Looking forward to the updates.

Our next question comes from the line of false Lombardo with Jeff. Please go ahead.

Hey guys.

Good morning. Can you hear me? Okay?

Yeah, you're breaking up, but we can hear you now.

Parameters would be helpful there.

Yeah, we haven't given specifics around the minimum bill levels, except to say that on all of our industrial customers, we have minimums or demand charges, and on all the hyperscalers it is significantly higher than what we've had on traditional customers. For the amount of incremental investments that they drive onto the system in the forecast period, I would think about these customers as going to be ramping up, and so their minimum bills are coming in during the period and they go into the ramping period. So you're going to have more opportunity once they get to full load versus a minimum bill. But certainly, there could be some opportunity near-term if perhaps they ramp up faster, but generally, I would think about it as we haven't given it, but the minimums are pretty substantial, so there's some margin, but it's not, you know, equal to what's already there.

Okay, no, that's helpful. Uh, one other I had, and again, can't wait for the Investor Day. Um, just as we think about, like, the capital you put into the plan today relative to the $0.50 of increase in 2029. Is there any information on shaping? Is that going to back-end weighted like we did in the 2020 non-cap? Just, it seems like there's more earnings to come—not to ask a leading question, but more earnings to come from that capital. Any flavor you could provide would be helpful. Thanks again. Yeah. So you can see the shading of the earnings through '27, '28, '29.

I am the materials, and then in my comments, I did note for a preview to '30 that we would expect the year-over-year from '29 to '30 to be roughly the same as the year-over-year from '28 to '29. So that gives you some indication of how that shapes into that fifth year.

Okay, awesome. Well, thank you very much.

Our next question comes from the line of Bill Abbey with UBS Financial. Please go ahead.

Yeah, good morning uh just isolating the The Meta update here. I mean, is the 14th to the expansion of that agreement.

Yeah, Bill and you can see that filing. That's pretty close to what is included there in the filing? There's something and I went through what we included and whatnot, what wasn't? But that's essentially the the ad here. There has there has been other Capital added since our last earnings change. Um, you know, you recall that we added Cottonwood and and there's been some other things that have happened but but uh, certainly the 14 billion is a is the key driver here.

Right. And then on top of that there is still some residual generation span that will show up in 30. Uh and then you you talked about the transmission and Renewables are also not included, right? So when we think about the totality of what that meta deal is worth in terms of capex, it's obviously something north of the 14th billion. Is that fair

Yes, Drew mentioned in his comments that it was.

15 billion.

Happens outside the period, and certainly, depending on where the solar and battery were, lands gives you some upside opportunity there.

Okay. And then when should the the full earnings run rate be realized, on the, The Meta expansion is that. I know you're talking about the CDs are in 30, I think into 301, right? So is that when we think about the, the the entirety of of the return on the capital being being reflected in financials, is that sort of at that point in time, is that kind of a 31? Mid 31 period of

Yeah, the CCTs finished closing in '31. So most of your capital is in by then. We gave you the ramp-up through '30. And, you know, we'll talk about what longer term visually looks like without giving you specific outlooks at Investor Day.

Right. Okay. All right. That's it for me. Thank you.

Our next question comes from the line of Steve Fleshman with Full Research. Please go ahead.

Hi, thanks. Uh, I think my, uh,

My questions, a lot of my question got answered on this, but just the sounds like there is Meaningful earnings that come from The Meta capex, Even though it is largely in place through 29 the earnings tale, a little later.

Is it, uh, you know, just as the projects come on? Is that—not that 50 cents is not a lot, but...

Yeah. Yeah.

yeah, see what

Similar upticks in 'radically' as to what we saw in the years that we gave you. Um.

for, you know, getting you to the similar type of growth rate in 30

Right. And then just

Uh, I the the 14x is that before kayak or after kayak, because we don't have rape base to kind of match up to uh from you.

Yeah, I would think about that related to CCC teams as largely overnight costs. So we did—I mentioned the transmission wasn't included, and then the financing costs largely are not included in there either.

Okay.

The you also mentioned this Renewables RFP separate from meta the 4 and a half gigawatts.

Of which two-thirds would be owned. Is that in your plan at two-thirds owned, or not?

About.

So so pretty good upside. There are relative so we had some projects that we had worked to save Harbor or just get ahead of relative to other solar interests. But there's a good bit of that. That's not in the plan.

Okay.

And uh, and then just on, I know, you don't need equity.

Uh, you know, for a while, uh, timing wise, you know, late 27, or 2829. Just how are you thinking about? Just the approaching Equity or you continue to try to get out ahead of that?

And, and, just—yeah, any thoughts on ways to approach?

Uh, getting the equity for this.

Yeah, to your point, we don't require equity until well into '20.

About ensuring that we stay ahead of that 30%, is already, um, you know, on the table. But the ATM's been an effective tool. We were able to use a block last year, um, but I would expect that, you know, we don't have we don't require, um, additional Equity until 27, so we can't speak to the specific timing, but I would think about

Thank you.

Our next question comes from the line of Sophie Carpet, KeyBank Capital Markets. Please go ahead.

Hi, um, good morning. Thank you for taking my question, and congratulations on a strong update here.

Um, so maybe if you could, um, talk a little bit about the regulatory. Um,

mechanisms you have, particularly in Louisiana and other areas that are experiencing

This significant growth. Um, do you feel like you have, um, sufficient, uh, tried-and-true recovery mechanisms in place and the risk of some regulatory fatigue of, um, you know, the, um, capital growth as much as it has been growing.

Thanks so Sophia it's a good question. Um, and good morning. Um, the

The I think we have adequate regulatory mechanisms in place certainly. You've seen, uh, our Regulators begin to change some of their processes. A good example is in Louisiana. The Louisiana lightning, uh, initiative to accelerate reviews for strong Economic Development projects, and I think that's really the key is, if we are providing significant benefits for customers communities, uh, I think The Regulators will be very supportive of

Of these kinds of ongoing activities, and I don't know that there would be necessarily any fatigue associated with that. That's why we've really been focused on these things. Um, if we can't provide that, obviously that would be a different story, but we've been able to do that pretty well so far. And we'd expect to be able to continue that story going forward.

All right, thank you and then uh maybe real quick um how if you could maybe come and give us some color on how the um yes the situation oil markets and um around the conflict um in the Middle East, is impacting your industrial customers or the positive for them or the negative for them. Like what's the, what is the situation on the ground in your territory?

Uh, great question. So if we

Uh, I guess, generally, it's been—I would say it's probably been positive for most of our industrial customers. The things that they are looking at are, uh, spreads between oil and gas that have obviously, um, increased. Uh, geographic spreads between the Gulf Coast and, uh, you know, Asia, Europe—um, those have increased. Uh, and so our industrial customers along the Gulf Coast have, uh,

Have.

Benefited somewhat from, uh, the the conflict over there. Um, but, uh, simply because it's dislocated the price is a little bit, but I would say it's not out of alignment with where we've been over the last decade to 15 years. Um, I'd say, you know, prices were as, you know, for oil, a little bit lower, um, early in the year. Uh, obviously they're higher now. Um, but they that, uh, the spreads that they pay attention to, um, that those are the same spreads that they've been seeing, you know, for a long period of time and frankly, we would expect them to continue to stay in place. Well, after the conflicts um are resolved

Right, thank you. I appreciate it.

Thank you.

Our next question comes from the line of Steve, debriefing with RBC Capital Markets. Please go ahead.

Hey Drew and Kimberly. Thanks very much for taking my question. Um I just had a a quick 1 if I look at the change in Terrell what our sales growth from 4 q to this update, it looks like it's just about 3 to wow hours. And so if I try to back into what that means from, uh, you know, incremental load from data centers. It seems like it's only 400 or, or 450 megawatts. And so, do you just talk a little bit about what how The Meta facility ramps? Because if it's, you know, 5 and a half incremental gigawatts, it feels like there's a ton of terawatt hour sales that are going to come Beyond 2029. So just want to

Understand what that means. Both for, you know, earned returns and also like Capital deployment Beyond 29.

How does the meta agreement ramp and how do I think about uh the the Tier 1 hour sales that you're seeing um you know certain yeah certainly we have to build to support this customer. You see that in the CCC deployment which come online in 30 and 31 so they are able to get some ramp in the period but you're you're full loads aren't going to come online until all of those offsets come online but recall that we have minimum bills on these customers as they ramp. And that minimum bill, um, is reflective of, you know, ensuring that they cover, the incremental costs, that they drive over the life of the contract. So that minimum Bill may not be directly in sync with the ramp, for example. Um, so what we've included in our forecast is the, the minimum bill here. But you should continue to see uh ramp as you as those assets come online.

Okay. And any, any—just again, like, it seems like it's really a very small amount in '29. And I know you were rolled to '30, but any flavor for what adding 5 gigawatts to the existing sales forecast does, like to sales kickers through, uh, 2032 or something like that? Because it just, it seems very, very—like an incredibly significant incremental step up. I just want to understand, like, if that has customer benefits.

for rate benefits that you can pass back or

Anyone to think about that. Yeah, we'll get.

Term that all customers are benefiting from this ramp is. And and from the minimum bills to the to the point that Drew May both, um, from the fair share component, ensuring that they're paying their portion of the incremental costs, and that will flow through the traditional mechanisms in Louisiana, similar in other jurisdictions. So there is opportunity and benefit there for other customers. Um, but we'll provide you that sales forecast just a few weeks through 2030.

Okay, great. Thanks. That's all I have. Thanks very much.

Our next question comes from the line of Chris Ellie house with cert Williams. Please go ahead.

Hey, good morning everybody. Um, Drew, the Visa V, the Iran issue is—is that

um,

providing some impetus for interest in new esas and in, in their, you know, sort of calculus of of where the world markets are.

um,

Certainly, over the last few years, we've seen a lot of interest in on-shoring because of geopolitical uncertainty, and I would say that—

this is current situation is just more continuation of that. Um so to the extent that people around the world are looking for a stable place to invest. Um you know and given the opportunities that are here and the advantages associated with the Gulf Coast, it becomes a natural uh, potential location. Um, when you're looking around the world, uh, it's a very it's a very attractive place to invest. So certainly this situation is not, uh, it's I would say It's probably causing people to look maybe even a little bit more, but it's not a new scenario. And and it goes with the with the, the long term kind of commodity spread discussion and I was I was talking about just a minute ago. Sure, that makes sense. I'm just curious, whether it was Expediting anybody's thought process um

Are there any other Cottonwood type transactions in your mind? Uh sort of in the hopper?

Well, there's there, I mean, we normally don't talk about M&A, but I will say, in this case there's really just not much, uh, in terms of other—

Uh, generators that are around. Um, so I I would not say it would be we'd expect that uh, asset m&a to be, uh, a significant part of our, um, our potential Capital outlay, going forward Beyond Cottonwood.

Okay, um, given the significant increase to the capex.

Um,

can you give us any idea of how it might alter your thinking about the Cadence of dividend payouts over, you know, the the 4 year Horizon?

Sure, it's Kimberly. We have historically had a 6% growth rate on our dividend and and we're obviously growing faster than that. And so that has an effect on your um, payout ratio. But that's been our philosophy to balance the growth rate in the, in the earnings and our in our sales growth rate relative to the growth rate in the dividend. Um so today that's the philosophy that we've taken to date and I think that that that is an appropriate balance as we think about that.

Over the next, uh, four years.

Okay, that helps. Um, lastly I guess Mississippi data center interests just seems to be exploding. Can you talk about uh or maybe this is something for June? You know, what, what's in the plan at this point? And you know, is there a significant, uh, bucket of

Un unplanned at this point.

Yeah, I would reference you back to our 7 to 12 gigabytes, which is not, uh, off code specific. But that's our, you know, our Enterprise view of the data centers. We don't provide that breakdown sort of either where they are in the pipeline or where they are specifically by opco. But still a significant opportunity before US 1 that we're working to um to shore up and to capture as much as we can. So lots of opportunity there but no specifics by operating company. And the data centers that are in our plan are already signed. Um we do not have any data centers in our plan uh that are prospective

Right. Okay, thanks for all the updates. It's a great quarter.

Thank you.

Our last question for today, comes from the line, is Andrew weisel with Scotia Bank. Please go ahead.

Hey everybody. Good morning.

Good morning.

Uh, two for me, thank you for adding me in here at the end. Uh, first, in terms of financing, the incremental $15 billion of capex or so for Meta, I understand that Meta is going to be paying for that under the Fair Share Plus commitment—great setup, of course. But you’re obviously including that in the capex and the equity plan. Maybe just remind me or help me understand how that works from a timing and cash flow perspective. Uh, you know, if you’re not going to collect the revenue, or how and when will you collect?

And Equipment payments and how? And when will the 2 or 7 billion dollars be returned to customers? How does that work in terms of the timing and how that impacts your credit metrics? I know you reiterated the credit metrics. But how does that work in terms of uh the the short-term impacts of of credit rating metrics and your conversations with the agencies and cash flows?

Is, Is our commitment and ensuring that these customers are paying their fair share. And that covers a number of areas 1 is ensuring that they're paying to support. Not just the incremental costs that they drive but also the embedded costs that are already in customers bills. And so that shows up in ways like in Mississippi we've talked before about superpower Mississippi, where they're deploying million dollars of capital

without incremental cost to customers because of the the embedded cost that AWS is supporting enables us to continue to make investments for customers without incremental costs. So, I would think about it that way. The another example is in Louisiana, we have securitized storm costs on their bills, already related to previous storms, and these customers will pick up their allocable portion of those costs. So customers that we're paying and we'll see a slightly less cost that's how that 7 billion dollars, effectively flows back to customers.

Okay. And in terms of the credit metrics and timing issues, is that how does that work? And is there going to be temporary pressure on the credit metrics during construction?

Yeah, as I noted in my comments, our credit metrics on a Moody's basis are 15% or better throughout this four-year forecast period during this heavy construction period. Um, and that has a lot to do with all the constructive mechanisms we have, as well as how we are contracting. So that doesn't in and of itself put pressure on the metrics, because again, it's enabling you to make investments. Um, as these customers pay a portion of incremental costs that the customers otherwise would have paid for previously.

Okay, very impressive. Then 1 last 1. If I may, uh, the 15% Industrial Sales growth in the first quarter was notably better than your guidance of 10% for the year and a big pick up from last year's. Full year results of 7%, you mentioned in the remarks that it was a combination of new and expansion projects. Can you just elaborate a little bit on what you're seeing and does that change your full year? Expect your your expectation for the full year.

Yeah, we did have a a, a good first quarter. Um, but on a year-over-year basis, we expected customers to ramp up. That's what you're seeing there. Um, we, it doesn't change what we expect for the full year. It does show up that, you know, we those customers are coming online, but even if the volumes were off a little bit, you would see that, you wouldn't see a decrement because of the minimum bills and other structures that we have, um, to support. So we're comfortable with our guidance, and our, um,

And, you know, we're pleased to see the volumes starting to come in.

Is the position toward the high end? Or is it too early to say something like that?

Yeah, it's way too early it's uh first quarter. So we've got we obviously have to get through the summer and then all the way through the end of the year.

Okay. Sounds great. Thank you very much.

Thank you, Andrew.

Thanks Andrew. And that took us over Q&A session for today. I will now turn the call back over to this, for closing remarks. Let's

thank you, John. And thanks to everyone for participating this morning.

Our quarterly report on form. 10 Q um, will be filed with the SEC at a later date and provides more details and disclosures about our financial statements events that occurred prior to the date of our filing. May provide additional evidence of conditions that existed at the date of the balance sheet would be reflected on our financial statements in accordance with generally accepted accounting principles.

Also, as a reminder, we maintain a web page as part of InvestEnergies—Investor Relations website—called 'Regulatory and Other Information,' which provides key updates on regulatory proceedings and important milestones on our strategic execution.

Well, some of this information may be considered material information. You should not rely exclusively on this page for all relevant company information.

And this concludes our call. Thank you very much.

Ladies and gentlemen, this concludes today's conference call. You may now disconnect your lines.

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