Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 270

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 270
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 2024569,844 $29,318 $293 March 20242,320,830 $119,153 $1,192 May 20242,556,832 $142,387 $1,424 May 20242,466,470 $134,396 $1,344 June 20242,140,006 $114,540 $1,145 Total15,560,474 $51.78 $805,669 Entergy Corporation incurred an aggregate amount of approximately $1.0 million of general issuance costs associated with the May 2025 settlement.  Entergy Corporation used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy Corporation’s revolving credit facility, and other debt.Equity Forward Sale AgreementsIn March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock.  In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties.  No amounts have been or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the forward sale agreements occur.  The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle the transactions by issuing the total of 17.8 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $81.87 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares.  The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. Until settlement of the forward sale agreements, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method.  Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price.  If Entergy had elected to net share settle the forward sale agreements as of June 30, 2025, Entergy would have been required to deliver 0.2 million shares.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Treasury Stock