Entergy Corporation (ETR) Q3 2026 Earnings Call Transcript

Operator: Good morning. My name is JL, and I will be your conference operator today. At this time, I would like to welcome everyone to the Entergy's Third Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to withdraw your question, simply press 1 again. I will now turn the call over to Liz Hunter, Vice President of Investor Relations for Entergy Corporation. Please go ahead.

Liz Hunter: Good morning. Thank you, JL, and thanks to everyone joining this morning. We will begin today with comments from Entergy's Chair and CEO, Drew Marsh, and then Kimberly A. Fontan, our CFO, will review results. In today's call, management will make certain forward looking statements. Actual results could differ materially from these forward looking statements due to a number of factors, which are set forth in our earnings release, our slide presentation, and our SEC filings. Entergy does not assume any obligation to update these forward looking statements. Management will also discuss non GAAP financial information. Reconciliations to the applicable GAAP measures are included in today's press release and slide presentation, both of which can be found on the Investor Relations section of our website. And now, I will turn the call over to Drew.

Andrew S. Marsh: Thank you, Liz, and good morning, everyone. Today, we are reporting very strong progress for the quarter. That includes not only financial results, but also business and regulatory accomplishments. Adjusted earnings per share was $1.98 driven by growth and a hot summer. With results to date and our biggest quarter behind us, we are narrowing our 2026 adjusted EPS guidance range, raising the bottom by $0.10. In addition, the hot summer allows us to reinvest in reliability and resilience for the benefit of our customers and communities. We also remain very confident in our longer term outlooks. Kimberly will review our financial results and outlooks in more detail. Turning to our customer update, I will start with Entergy Arkansas's recently announced service agreement amendment with Google for the expansion of its West Memphis campus. Consistent with our fair share plus pledge, and the rate payer protection pledge, this agreement ensures that Google will cover its fair share. Which includes the cost of the new investments as well as their share of system costs. Expansion will create incremental bill benefits for our Arkansas customers. Increasing Entergy Arkansas's expected fair share plus customer bill savings by at least $500 million. And bringing the total to at least $7.5 billion across Entergy's utility companies. We anticipate that Google's expansion will generate new jobs, new tax revenues, and economic activity, which will significantly benefit the West Memphis community. In connection with the agreement, Entergy Arkansas filed a request for approval of its contract with Google, $600 million of investment for battery storage systems, and a purchase power agreement for Big Island Solar to provide clean attributes. Pending commission approval targeted for the first half of 2026, the expansion is expected to begin ramping in 2028. Beyond Arkansas, we continue to see several positive indicators which will support further growth. For example, Entergy States rang among the top 10 nationwide for growth in new business applications. GDP has risen significantly across all of Entergy's regions since the pandemic, reflecting sustained economic expansion, and a study by the Louisiana Economic Forecast Group projects that the state will add more than 55 thousand jobs over the next 2 years. Entergy's advantages, including the 1 stop shop of our vertically integrated business, solid strategy for operational success, and commitment to our customers continues to drive customer interest in our service area. And we are putting in the legwork to attract new businesses to our states. To that end, we were named a top utility in economic development by Site Selection magazine for the 19th straight year. All of this is why we have a strong pipeline of projects in varying stages that are not in our base plan. Data center interest remains strong. And in the range of 7 to 12 gigawatts. Our traditional industrial segments continue with discussions for 3 to 5 gigawatts. We see these projects as having the potential to convert into signed agreements within the next 24 months. And we do not include every call that we receive, which would be significantly larger. I am also proud to note that Entergy is 1 of 5 recipients of EEI's 2026 national key accounts award for outstanding customer engagement. Importantly, this award is determined by corporate customers themselves. This is a validating milestone for our ongoing efforts to put our customers at the forefront of every decision we make. At the same time, we remain excited about the opportunities still ahead to do even more. As our work to meet our customers and communities' expectations has ramped higher over the last few years, our employees have transformed every corner of our company. In some cases, multiple times. While our work has expanded, our number of employees has not increased significantly. that is because our employees are working smarter and developing innovative solutions that leverage our execution strategy of scale strategic partnerships, and standardization to manage risk, schedule, and cost efficiency. and help us create better outcomes for our customers and communities. I am profoundly grateful for their innovation as well as their hard work and dedication. I mentioned the hot summer earlier. We also had strong industrial sales growth. And we saw new records for peak demand. In August, our system experienced more than 24 thousand megawatts of coincident peak demand. Up 2% from the previous peak. The largest change came from Entergy Mississippi, which was 11% higher as a result of data center ramping. Through it all, our employees performed very well. Maintaining system reliability and managing costs. The Orange County Advanced Power Station or OCASS is complete and operational. Delivering 1.2 thousand megawatts of power to our Texas customers at a cost far less than a similar plant would require if starting construction today. This plant is an important addition for Entergy Texas. Where we are experiencing strong population growth and industrial expansion. In addition to much needed capacity, the plant is among the most efficient in the world. And will support reliability for all customers of Intrigy Texas. OCAS is the first of many new power plant projects. And our employees and contractors are taking lessons learned from this plant and applying those innovations to other projects. In fact, a significant portion of our workforce from OCAS is now at other project sites, bringing our expectations on continuous improvement as well as health and safety culture. At the same time, employees from our other sites participated in commissioning and startup of OCAS. To lower risk ahead of their own commissioning. In addition, our standardized design has allowed us to improve efficiency and schedule, through a roughly 50% reduction in the time required for engineering, which helps mitigate exposure to rising labor costs. Similarly, the standardized design combined with our scale has allowed us to perform batch purchases of construction materials and create access to construction heavy equipment to improve outcomes on cost and schedule versus market benchmarks today. Finally, we are deploying technology in the form of drones to inspect equipment, pipes, the site overall as well as robotic welding technologies. To improve quality and speed of outcomes. All of this allows us to remain very competitive in the construction of combined cycles. With the completion of OCAPs, we now have 2.3 gigawatts, or 3 natural gas plants in the queue. 10 plants are in various stages of construction. We also have 9 plants in regulatory review in Louisiana, with schedules to support decisions later this year. We have an additional 4 plants that are in our supply plan. But later in the cycle. That leaves 8 units that are available for new growth opportunities. For transmission, we have more than 1 thousand miles of lines planned, primarily in Louisiana and Texas. And 85% of which are 500 kV lines. Approximately 70% of the investment is already approved. With 2 projects currently under regulatory review expected to conclude this year. And about a third of the line miles are already under construction. These projects will support growth from our traditional industrial customer base as well as from data centers. The work will also create efficiency and resilience benefits for all our customers. Similar to our generation projects, these transmission projects demonstrate our employees' capability to execute at scale with innovation. Much of the terrain for these new lines is remote, and difficult to access. Our teams have responded with innovations in foundations and pole design that make more cost effective equipment available to do the work. You may recall the video from Investor Day that demonstrated an innovative design that allows hands free setting of cross arms using helicopters. And today, the team is making pioneering use of drone technology to string the high voltage power lines in a fraction of the time. The combination of these innovations significantly reduces the risk of injury, the number of workers, and the time required for construction. In addition, these innovations are helping mitigate much of the material and labor cost pressure we are seeing across the industry. Originally deployed on a Commodore to Waterford project, we can replicate these gains across our other projects as we continue to seek more innovation to drive even better outcomes for our customers and communities. To fuel this growth, and in this case, quite literally, in the third quarter, we signed natural gas firm transportation agreements with large midstream and pipeline companies for 1.325 billion cubic feet of natural gas per day. that is enough for Entergy to supply fuel to 10 new combined cycles in Louisiana. This supports our generation growth and also helps build new pipeline capacity that benefits our industrial customers growth. We continue to make progress on resilience to better serve our customers with our $2 billion phase 1 accelerated resilience programs. For example, Entergy Louisiana is now working on a $270 million grid resilience project just outside New Orleans that will replace more than 500 poles and other electrical infrastructure enhancing resilience and reliability for our customers. Grants are also a way to support resilience with affordability. Delivering benefits to customers at a much lower cost. Entergy New Orleans broke ground on a grant funded grid hardening project that will upgrade 94 poles and directly benefit more than 1.9 thousand customers. In addition, the Department of Energy's GRIP program recently awarded our utilities $14 million to deploy advanced dynamic line rating technology across more than 1 thousand miles more than 1 thousand miles of existing transmission lines in Arkansas, Louisiana, and Mississippi. This investment will boost the amount of power we can safely move using the infrastructure we already have. Ultimately, our grid will be stronger and more reliable to support the region's economic growth. We appreciate the DOE's partnership and its commitment to strengthening energy resilience in our region through innovation. Moving to regulatory matters. Putting our customers first remains a cornerstone of outcomes that benefit all stakeholders. Over the past quarter, we continued to move steadily through multiple proceedings. Beginning with the rate case in Arkansas, customer growth as well as disciplined capital and operational management allowed Entergy Arkansas to settle with staff on terms that result in essentially no rate change. Important components include a 9.7% ROE, and a 47.5% equity capital structure after adjusting for deferred tax. We anticipate a commission decision before the end of the year. We appreciate the staff's effort to get to a settlement to support credit, Which is a piece of the puzzle that enables benefits for our stakeholders. Especially customers, by keeping financing costs low. Working together, we are able to bring new businesses to the state, new jobs for our service area, more revenues for our local economies, and significant businesses benefits to our existing customers through Fair Share Plus. Our stakeholders in Arkansas remain aligned to do this work together. And we can do our part to support economic development and protect our customers when we have a strong balance sheet. In Louisiana, we filed a settlement agreement with staff and Walmart in our EVEST docket which covered the majority of key issues. The hearing was held in early October, and we expect the commission to take up the matter at its December business and executive meeting. The Louisiana Public Service Commission also approved the $1.2 billion Babble to Weber transmission project at its October meeting. This enables us to support the strong growth in the state, also providing reliability and resilience benefits for all our customers. We have requested approval for additional resilience and reliability investment in Louisiana, and Entergy Louisiana also requested to extend its formula rate plan for 1 year. We are targeting a decision in that docket by the end of the year. Finally, Entergy New Orleans received approval to extend its formula rate plan for 4 more years into 2030. As you know, it is been a busy regulatory year. And we still have much to go before the end. We are continuing to work constructively with our stakeholders to resolve concerns, and create value for our customers and communities. We will see many of you at the EEI Financial Conference where we will continue to share our differentiated growth story. It is anchored in what I just said. A firm commitment to create value for our stakeholders starting with our customers. We are delivering generational growth for our region and economic development that benefits the customers' communities we serve. Kimberly A. Fontan and I will be there along with our company CEOs. Including David Boardman in his new role as Entergy Texas President and CEO. Many of you may remember David from his days in Investor Relations. We look forward to continuing this conversation with you at the conference. And now I will turn the call over to Kimberly, who will review our financial results and outlooks.

Kimberly A. Fontan: Thank you, Drew. Good morning, everyone. We had another very productive quarter. I will walk through our financial results as well as our guidance and outlook, and I will provide a look ahead to EEI. Our adjusted EPS was strong at $1.98 as shown on slide 4. This was higher than last year due to several drivers. As Drew mentioned, it was warmer this year. Even after normalizing for weather, we saw strong sales growth in both the residential and industrial sectors. Industrial growth included data center and primary metals ramping, consistent with our expectations. We also saw the effects of investments made for our customers, including regulatory actions as well as higher depreciation expense, taxes other than income taxes, and financing costs. Other drivers, consistent with last quarter's progress against guidance comments included: higher other O and M as we deployed dollars in vegetation management and other maintenance in support of reliability for our customers. Higher interest expense at parent and a higher share count from settling equity forwards. Slide 5 summarizes our credit ratings and affirms that our credit metric outlooks remain better than rating agents thresholds. For financings in the quarter, we settled equity forwards totaling just over $900 million in September. We issued junior subordinated notes totaling $1.5 billion, which received 50% equity treatment supporting balance sheet health and managing equity needs for our growth. And Entergy Louisiana issued $1 billion in bonds. The majority of which will finance new growth. We split the notes between 10 and 30 year tenures with an average rate of less than 6%. Our plan financings for the year are now complete. We will provide credit outlooks at EEI, but I will give you a preview. We continue to expect strong FFO to debt throughout the outlook period, and we expect Moody's FFO to debt metric to be at 15% or better in all years. As we roll forward a year, our outlook will shift from the 5 year view we provided at Investor Day to 4 years of 2027 through 2030. Our equity plan is summarized on slide 6. We have been proactive in addressing our equity needs. We have taken significant price risk off the table, and we have ample time to raise capital. For our 2027 through 2030 need, more than 40% is already contracted. Which takes us well into 2028. Our equity needs for the 4 year outlook period are just below our targeted range of 10% to 15% of our total capital plan. Supported by a number of elements, including strong operating cash flows from the business backed by our disciplined capital prioritization, and constructive regulatory mechanisms. Production tax credits and investment tax credits are credit supportive in the near term and provide customer benefit over the longer term. In October, we received $256 million in cash from the sale of our 2026 production tax credits. As a reminder, we only include nuclear production tax credits in our forecast once they are earned. We have accessed traditional sources capital, including through our ATM program and junior subordinated notes. We have also expanded our tools in our approach to customer contracting with hyperscale customers, ensuring these customers pay their fair share, protecting other customers, and supporting our credit. We have been innovative in expanding our investment by accessing less traditional markets. For example, in October, we closed on our second build to suit lease. This 1 for Entergy, Louisiana's Waterford 6 plant. These structures are competitive with traditional financing, supporting our credit, and managing our equity needs during the construction period. And we are listening to our customers as we continue to advance additional growth opportunities. We are exploring other nontraditional financing tools, will continue to support more growth and our credit and expand our investment capacity, while ensuring large customers pay their fair share. This work is in the early stages and is expected to support longer term projects that would close beyond our 4 year outlook period, further extending our growth rate past 2030. Our adjusted EPS guidance and outlooks are shown on Slide 7. As Drew mentioned, we are narrowing our 2026 guidance range, raising the bottom by point $10 Higher than planned retail sales year to date enable us to manage the business and flex spending in areas that benefit our customers. Looking beyond 2026, our outlooks remain unchanged as we continue to expect strong sales to support our greater-than-8% trajectory. Drew discussed Entergy Arkansas's contract expansion with Google. We added approximately $600 million to our plan as a result of this development. In total, we increased capital approximately $1.5 billion from 2026 through 2030, inclusive of the investments to support the Google expansion. The incremental spend also includes investments and updates that come out of our annual planning cycle. The expected earnings impact from this increase moves us into the upper end of our outlook ranges. Drew and I, along with our operating company leaders, will be in Phoenix in less than a week where we will talk about our strong customer growth story as well as our plans to invest in reliability to better serve our customers. We have a solid base plan consistent with our strategic objectives. We will also talk about upside opportunities from the potential for higher sales growth as well as other investments. Today, we have provided our adjusted earnings per share outlook and a high level view of our preliminary capital and equity plans through 2030. At EEI, we will provide more details on these outlooks. We have clear line of sight to achieve our outlooks, and we have significant opportunities before us. And now we are happy to take your questions.

Operator: Thank you. The floor is now open for questions. At this time, I would like to remind everyone, in order to ask a question, press star and then the number 1 on your telephone keypad. Once again, that is star 1. In the interest of time, we ask that you please limit yourself to 1 question, 1 primary and 1 follow-up question. And I will pause just a moment to tally up our Q and A roster. Your first question comes from the line of Shahriar Pourreza of Wells Fargo.

Constantine: Hi. Good morning, team. it is actually Constantine here for Shahriar. Congrats on a great quarter.

Andrew S. Marsh: Thanks, Constantine. Good morning.

Kimberly A. Fontan: Maybe starting off on the moving pieces with the new 4 year CapEx plan. Looks like a modest step up versus the prior plan. Does that fully account for the data center deals including the transmission and the clean gen options that were mentioned before? Or maybe another way to ask, is there any other moving pieces that would contribute to potential upsides kind of beyond what where your plan currently indicates? Sure. Good morning, Constantine. The $1.5 billion that was added was $600 million for the Arkansas Google expansion, which was primarily the 2 batteries, and then just general puts and takes in the normal capital process. You will see that in transmission and generation.

Constantine: what is not there is, you may recall, there is about $1 billion of transmission related to the Entergy Louisiana transaction that is pending before the Louisiana commission. We have not added that. We are waiting for that decision to come out of the regulatory environment. And then certainly, there is still the cleanup opportunity that you referenced. So to the extent that our customers have asked for incremental clean energy in many of their contracts, as those get selected, out of our RFPs or through self build processes, those will get added as well.

Kimberly A. Fontan: So opportunity to add capital in the plan, but this is really just those few things that I mentioned at this point.

Constantine: And just to clarify, that would not kind of be rolling into the rate base EPS outlook at EEI. Correct?

Kimberly A. Fontan: Yeah. I would not expect that to come in at EEI. No. Okay. Perfect.

Constantine: And then, maybe shifting to the regulatory outcomes with Arkansas and flat revenue. Obviously, a great outcome. Is flat base rates something that you would anticipate to occur kind of more often going forward? And given the revenue sufficiency, does that imply narrowing of the ROE lag just any areas of focus for 2027, like the Texas GRC or FRPs?

Andrew S. Marsh: Well, I think this is Drew, David. So I think that the. Or Constantine. Sorry. The I think that the other jurisdictions, will depend more upon what the investment requirements are relative to the customers themselves. So in Louisiana and Texas, for example, we have significant resilience investment ongoing. And we also have just traditional sales growth that is requiring generation ads. And transmission. So those do not have data centers covering all their costs. Now in the case of Louisiana, there is obviously a large data center there, and that is helping contribute to some of those costs. But not necessarily to make it go back to flat like we were in Arkansas. I think overall, our bill trajectory is still around 4%. So we are still continuing to work on that and find ways to make it even lower. But that is reflecting growth in our traditional our traditional customer base. Excellent. Understood. Thanks for thanks for the time this morning, and a separate congratulations from the team to David Boardman. Alright. See you guys soon. Awesome. Thanks, Constantine.

Operator: Your next question comes from the line of Jeremy Tonet of JPMorgan. Your line is open.

Jeremy: Hi. Good morning.

Kimberly A. Fontan: Good morning.

Jeremy: At the Investor Day and earlier in commentary, on the call, you spoke to Energy's ability to enhance self-build capabilities. And where do you see this progress, I guess, so far in specifically helping competitiveness in RFPs. And when we think about the renewables there, just wondering how you think progress has been made and enhances your competitive position there?

Andrew S. Marsh: that is a good question. So we are continuing to work on that. In both the solar area and in the CCS space. We are making good progress, but we do not have any specific announcements to make right now. We will continue to work on it. We are finding real progress in the CCS space in particular. With innovations to try and bring the overall construction cost down and make that technology much more competitive. And hopefully to fit within the frameworks of the incentives that are available today. But we are not at the point yet where we can announce success or a commercial transaction. And we are having conversations with customers about these things, and trying to find our way through. So we remain optimistic, but we do not have an opportunity to announce anything right now.

Jeremy: Got it. that is helpful. Maybe continuing just a little bit more here. I think you talked about 2.5 gigawatts of renewables investment to serve, Meta's Vista project.

Kimberly A. Fontan: And part of the upside potential there. And so how should we think about timing, your competitiveness here? You know, what could possibly fall into the plan over time? Morning, Jeremy. it is Kimberly. As we have talked about the solar. I would expect the solar investment for that could certainly come in the back end of the current forecast period and then extend beyond our 2030 period. That process, many of those go through RFP processes. Drew talked about expanding our own build-to-build capability, but certainly, could see some upside in this period. And then beyond that as well.

Jeremy: Got it. that is helpful. And then just quick last 1 for me.

Andrew S. Marsh: We are doing the plan for an investment over the planned period. Can you remind us of expected timing for Phase 2 and beyond? And could this, could there be any overlap in timing of the plans here, or is beyond the planned period? We have not given a whole lot of thought to phase 2 at this point, although we certainly would expect that there would be 1. We are working right now on 1A. Phase 2 would, I think, be near the end of the outlook period at the earliest. Got it.

Jeremy: Thank you. I will leave it there.

Andrew S. Marsh: Alright. Thank you, Jeremy.

Operator: Your next question comes from the line of Paul Zimbardo of Jefferies. Your line is open.

Paul: Hi. Good morning, team.

Andrew S. Marsh: Good morning. Thank you for the time.

Paul: The first, just a clarification. I have for Kimberly. On the upper half of the range, does that apply for the 2027 through 2030 range, or is that later in the plan? I just was not clear if that is for every year of the plan.

Kimberly A. Fontan: Yeah. that is a look at just the 4 year period, the reference to the full 4 year period.

Paul: Okay. Okay. Great. Then the other 1, more big-picture question, I know you have talked about in the past. Could you provide an update on any efforts on exploring some more speed to market options, whether reciprocating engines or something else for customers looking for more speed to market?

Andrew S. Marsh: Yeah. Sure, Paul. This is Drew. We are looking at some of that stuff. it is going to be very, very expensive. We are looking for things that can extend the assets that we already have. So primarily as a shorter-term and more cost effective option for customers. So that includes things like we announced with Google, some batteries to help with peaks because Arkansas is long on baseload energy. And so getting some more peaking capacity in Arkansas is helpful. We are looking at uprates of power plants, whether it is nuclear or gas units, to help out. And we are also looking at some solar which we think can get in fairly quickly. Those are the primary mechanisms but we are looking at some of these other options and having conversations with customers about them. We have not seen a whole lot of interest from that because of the price challenges, but it is certainly a piece of the conversation. Okay. Great. Thank you for that color. Appreciate it.

Kimberly A. Fontan: Absolutely. Thanks, Paul.

Operator: Your next question comes from the line of Ryan Levine of Citigroup. Your line is open.

Analyst: Good morning. Is there any upside in the 7 to 12 gigawatts or the 3 to 5 gigawatts of load that you identified potentially within 24 months? That could be associated with the recent Venture Global announcement? Realize it was announced behind the meter, but do you anticipate any opportunity both either on the generation or on the T&D side, associated with that opportunity?

Andrew S. Marsh: Yeah. Ryan, this is Drew. We have not -- we are not in a position to talk specifically about the kind of thing that Venture Global But certainly, we are open to partnerships with anybody that is interested and are always willing to have those kinds of conversations. And there is a tremendous amount of growth opportunity in our service territory. So we continue, you know, right now we are talking still about the 7 to 12 and the 3 to 5. That is enough to fuel our growth at current rates well into the future. So I do not -- I would not comment on any potential expansions at this point other than to say just sort of repeat what we have already said. And, again, in regards to the Venture Global piece, you know, we are excited. They are a customer of ours. And so we are excited for them to be interested in further investment in our service territory. That will certainly benefit our local communities and our local economies But at the same time, we have a lot of generation building capability ourselves, and we are competing to do that on our own. So we have had a lot of success, as you know. So we will see where that goes. But we are very confident that we can continue to compete in our service territory. Thank you. Thank you.

Operator: And, again, if you have a question, please press 1 on your telephone keypad to join the queue. Our next question comes from the line of Durgesh Chopra of Evercore ISI. Your line is open.

Analyst: Hey, team. Good morning. Thanks for taking my question.

Andrew S. Marsh: Good morning.

Analyst: So on the industrial demand, I saw that growth was about 5% this quarter versus roughly 10% in Q2. Could you please help us understand any change in the underlying activity there? How should we think about that trajectory into 2027?

Kimberly A. Fontan: Yeah. Durgesh, it is Kimberly. there is no underlying change from what we expected there. You are starting to get comparisons year over year to where you saw ramping last year. So it is just as you continue to go through the quarters, you are continuing to see increases, but the year over year may be different on a quarter basis depending on when things ramped last year. You may recall from our Investor Day, we talked about a 16% growth rate in the sales for industrial from 2026 through 2030. And we do not see anything moving us from that. We announced the Google expansion today, which is certainly continuing to support increased sales there. Structurally, nothing has changed. What you are just seeing is some typical quarter over quarter differences based on what was in last year versus this year. Got it. that is very helpful. And then on the extended Google agreement in Arkansas, Could you help us understand how much is already reflected in your capital or earnings outlook versus incremental updates. Sure. The 600 million which is for the 2 batteries, was added in this quarter. You will see that at EEI as well. So that. that is the investment that was added, and then you will see incremental sales as a result of that agreement. But that is the primary investment change that you will see associated with that. Got it. it is very helpful. I will leave it there.

Andrew S. Marsh: Thank you. Thank you.

Operator: Next question is from the line of David Paz of Wolfe Research. Line is open.

David: Good morning. Actually, a clarification. I think you were asked about the upper half of the Outlooks, but I believe Kimberly said the upper end of the growth outlooks in your prepared remarks. Is that correct?

Kimberly A. Fontan: David, I said upper half. So the upper half from 2027 through 2030, that is consistent with -- I think you will find that in my comments, but just to clarify, that is where I was.

David: Thank you for clarifying that. Just on the 7 to 12 and 3 to 5, that you expect to convert to ESAs within the next 24 months. Could that start to ramp up in your current plan, so I guess through 2030, or would that be post-2030? Your expectation?

Andrew S. Marsh: Yes. I think the answer is both, David. You could certainly see some ramping in the current period and then certainly to get full assets like the CCCTs that are in our turbine queue that are available, those are going to come online afterwards. So it is an extension really of the growth rate that we have seen today well beyond 2030. But you could see some opportunity in the current window as well. Okay. Great. Thank you for that.

David: Just on the alternative financing that you discussed. I believe I believe you said those would be mostly post 2030. At least for CapEx beyond that. Just can you give us any more examples of what those could look like?

Kimberly A. Fontan: Sure. As I mentioned, we just closed on the bill to suit lease. that is the second 1. that is the first of its kind in the utility sector. We have used that effectively here. So this is a continuation of that. Process around accessing markets that perhaps are less traditional. So it could be private credit or other tools that help us expand our investment capacity. Again, much of that would likely show up outside our current outlook period, and I would fully expect to own those assets over time. But this is just helping us get our customers on faster, expand the capacity, support the balance sheet and really extend that outlook beyond 2030. Got it. Thank you.

Andrew S. Marsh: Thank you, David.

Operator: And our last question comes from the line of Andrew Weisel of Scotiabank. Your line is open.

Andrew: Hey. Good morning, everyone. Great updates. Just 1 quick clarifying 1. On equity, you mentioned that the updated needs today are below the targeted 10% to 15%. Is that something that we should expect going forward? You guys are consistently adding CapEx to the plan. What should we expect going forward?

Kimberly A. Fontan: Good morning, Andrew. I would expect to continue to target that 10% to 15% for a total capital plan. that is going to vary based on specific incremental assets. But what you are seeing right now, which is in the 9% to 9.5% range, is just a function of timing around the capital adds But I would still expect to target that 10% to 15% over the total capital plan. Okay. So as you add more capital, you know, near term or over time, 10% to 15% is the number that we should be expecting going forward? Over the whole capital plan. Yes. Okay.

Andrew: Great. that is all I had. Thank you.

Kimberly A. Fontan: Thank you.

Operator: With no further questions, that concludes our Q&A session. I would now like to turn the call back over to Liz for some final remarks. Please go ahead.

Liz Hunter: Thank you, JL, and thanks to everyone for participating this morning. Our quarterly report on Form 10 Q is due to the SEC on November 9th and provides more details and disclosures about our financial statements. Events that occur prior to the date of our 10-Q filing that provide additional evidence of conditions that existed at the date of the balance sheet will be reflected in our financial statements in accordance with generally accepted accounting principles. Also, as a reminder, we maintain a web page as part of Entergy's investor relations website called Regulatory and Other Information, which provides key updates of regulatory proceedings and important milestones on our strategic execution. While some of this information may be considered material information, you should not rely exclusively on this page for all relevant company information. And this concludes our call. Thank you very much.

Operator: This concludes today's conference call. You may now disconnect.