Entergy Announces $500M Share Buyback Program

TL;DR

Entergy just authorized a $500M buyback through end of 2025 to offset dilution.

AI Summary

On May 23, 2024, Entergy Corporation announced a new $500 million share repurchase program. This program is authorized through December 31, 2025, and is intended to offset the dilutive effect of equity issuances under its dividend reinvestment and direct purchase plans.

Why It Matters

This share repurchase program signals Entergy's confidence in its financial stability and commitment to returning value to shareholders.

Risk Assessment

Risk Level: low — The announcement is a standard capital allocation strategy and does not indicate any significant new risks for the company.

Key Numbers

• $500M — Share Repurchase Authorization (Amount authorized for share buybacks)
• 12/31/2025 — Program Expiration (End date for the share repurchase program)

Key Players & Entities

• Entergy Corporation (company) — Registrant
• $500 million (dollar_amount) — Share repurchase program authorization
• December 31, 2025 (date) — Expiration of share repurchase program
• May 23, 2024 (date) — Date of report

FAQ

Key Financial Figures

• $0.01 — nge on Which Registered Common Stock, $0.01 Par Value ETR New York Stock Exchange
• $1.157 billion — ct from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension P
• $305 million — arter of 2024 estimated in the range of $305 million to $335 million on a pre-tax basis (app
• $335 million — timated in the range of $305 million to $335 million on a pre-tax basis (approximately $241
• $241 million — llion on a pre-tax basis (approximately $241 million to $265 million after-tax); however, th
• $265 million — ax basis (approximately $241 million to $265 million after-tax); however, the actual amount

Filing Documents

• etr-20240523.htm (8-K) — 34KB
• 0000065984-24-000056.txt ( ) — 210KB
• etr-20240523.xsd (EX-101.SCH) — 3KB
• etr-20240523_def.xml (EX-101.DEF) — 18KB
• etr-20240523_lab.xml (EX-101.LAB) — 31KB
• etr-20240523_pre.xml (EX-101.PRE) — 18KB
• etr-20240523_htm.xml (XML) — 4KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure Entergy Corporation ("Entergy") is undertaking the transaction described under Item 8.01 below to eliminate the risk and volatility associated with the transferred pension liability, which is fully funded, and is consistent with its pension de-risking strategy. The one-time non-cash pension settlement charge that will result from the transaction will be considered an "adjustment" to Entergy's net income under generally accepted accounting principles ("GAAP"), and therefore will not affect Entergy's adjusted earnings per share (non-GAAP). The impacts to Entergy's ongoing earnings and credit outlooks are expected to be immaterial. Entergy affirms its adjusted earnings per share and credit outlooks. Cautionary note regarding forward-looking statements In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2024 earnings guidance; current financial and operational outlooks; expected impacts to credit metrics and ratings; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, an

01 Other Events

Item 8.01 Other Events. On May 23, 2024, Entergy Corporation ("Entergy") entered into a commitment agreement by and between Entergy, Newport Trust Company, LLC (Newport"), as independent fiduciary of Entergy Corporation Retirement Plan II for Non-Bargaining Employees, Entergy Corporation Retirement Plan II for Bargaining Employees, Entergy Corporation Retirement Plan III, and Entergy Corporation Retirement Plan IV for Bargaining Employees (the "Pension Plans"), and the Metropolitan Life Insurance Company ("MetLife"), under which the Pension Plans purchased a nonparticipating single premium group annuity contract from MetLife to settle approximately $1.157 billion of benefit liabilities of the Pension Plans. The purchase of the group annuity contract is expected to close on May 31, 2024. The group annuity contract primarily covers a population that includes 3,447 retirees, joint annuitants, beneficiaries and alternate payees who commenced benefit payments from the Pension Plans on or before March 1, 2024 ("Transferred Participants"). MetLife irrevocably guarantees and assumes the sole obligation to make future monthly pension benefit payments to the Transferred Participants as provided under its group annuity contract, with direct payments beginning September 1, 2024. The aggregate amount of each Transferred Participant's payment under the group annuity contract will be equal to the amount of each individual's payment under the Pension Plans. Participants in the Pension Plans who are not covered by the group annuity contract, including participants who commence benefit payments after March 1, 2024, as well as certain excluded participants who commenced benefit payments on or before March 1, 2024, will not be affected by this transaction. Transferred Participants will continue to receive their benefits from the Pension Plans until September 1, 2024, at which time MetLife will assume responsibility for administrative services, including distribution of payments