Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 112

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 112
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99

Table of ContentsEntergy Mississippi, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

•a capital contribution of $62.5 million received from Entergy Corporation in order to maintain Entergy Mississippi’s capital structure; and

•money pool activity.

The increase was partially offset by borrowings of $100 million in 2024 on Entergy Mississippi’s credit facility.

Decreases in Entergy Mississippi’s payable to the money pool are a use of cash flow, and Entergy Mississippi’s payable to the money pool decreased by $17.5 million for the three months ended March 31, 2024.

See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

Capital Structure

Entergy Mississippi’s debt to capital ratio is shown in the following table.  The increase in the debt to capital ratio for Entergy Mississippi is primarily due to net issuance of long-term debt in 2025.

March 31, 2025December 31, 2024Debt to capital54.7 %50.4 %Effect of subtracting cash(5.4 %)(1.6 %)Net debt to net capital (non-GAAP)49.3 %48.8 %

Net debt consists of debt less cash and cash equivalents.  Debt consists of short-term borrowings, 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.  Entergy Mississippi uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition.  The net debt to net capital ratio is a non-GAAP measure.  Entergy Mississippi uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition because net debt indicates Entergy Mississippi’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 Mississippi’s uses and sources of capital.  The following are updates to the information provided in the Form 10-K.

Recent announcements of changes to international trade policy and tariffs and