Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 222

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 222
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 30, 2025December 31, 2024Debt to capital52.8%51.6%Effect of excluding securitization bonds(1.4%)(1.7%)Debt to capital, excluding securitization bonds (non-GAAP) (a)51.4%49.9%Effect of subtracting cash—%(1.5%)Net debt to net capital, excluding securitization bonds (non-GAAP) (a)51.4%48.4%

(a)Calculation excludes the securitization bonds, which are non-recourse to Entergy Texas.

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Table of ContentsEntergy Texas, Inc. and SubsidiariesManagement’s Financial Discussion and Analysis

Net debt consists of debt less cash and cash equivalents.  Debt consists of finance lease obligations and long-term debt, including the currently maturing portion.  Capital consists of debt and equity.  Net capital consists of capital less cash and cash equivalents.  The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures.  Entergy Texas uses the debt to capital ratios excluding securitization bonds in analyzing its financial condition and believes they provide useful information to its investors and creditors in evaluating Entergy Texas’s financial condition because the securitization bonds are non-recourse to Entergy Texas, as more fully described in Note 5 to the financial statements in the Form 10-K.  Entergy Texas also uses the net debt to net capital ratio excluding securitization bonds in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Texas’s financial condition because net debt indicates Entergy Texas’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

Uses and Sources of Capital

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Texas’s uses and sources of capital.  The following are updates to the information provided in the Form 10-K.

Entergy Texas is developing its capital investment plan for 2026 through 2029 and currently anticipates making $6.5 billion in capital investments during that period, including $1.5 billion in 2026, $1.4 billion in 2027, $2.5 billion in 2028,