Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 143

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 143
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 deliveries, and the timing of cash payments during the nuclear fuel cycle and money pool activity.

Decreases in System Energy’s receivable from the money pool are a source of cash flow and System Energy’s receivable from the money pool decreased $2.4 million for the three months ended March 31, 2025 compared to increasing by $31.5 million for the three months ended March 31, 2024.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Financing Activities

System Energy’s financing activities used $49 million of cash for the three months ended March 31, 2025 compared to providing $229.4 million of cash for the three months ended March 31, 2024 primarily due to:

•a capital contribution of $150 million received from Entergy Corporation in January 2024 in order to maintain System Energy’s capital structure;

•net repayments of $13.8 million in 2025 compared to net long-term borrowings of $91.7 million in 2024 on the nuclear fuel company variable interest entity’s credit facility; and

•$35 million in common stock dividends and distributions paid in 2025.  No common stock dividends or distributions were paid in 2024 in anticipation of the settlements with the APSC, the LPSC, and the City Council.

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Table of ContentsSystem Energy Resources, Inc.Management’s Financial Discussion and Analysis

Capital Structure

System Energy’s debt to capital ratio is shown in the following table.  

 March 31, 2025December 31, 2024Debt to capital52.9 %52.9 %Effect of subtracting cash(0.1 %)(0.7 %)Net debt to net capital (non-GAAP)52.8 %52.2 %

Net debt consists of debt less cash and cash equivalents.  Debt consists of short-term borrowings and long-term debt, including the currently maturing portion.  Capital consists of debt and common equity.  Net capital consists of capital less cash and cash equivalents.  System Energy uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating System Energy’s financial condition.  The net debt to net capital ratio is a non