Entergy Arkansas LLC Deb 2066 (EAI)EAI

Entergy Arkansas LLC Deb 2066 (Symbol: EARLZ)

Company Profile

History and Background:

Entergy Arkansas LLC Deb 2066 is a corporate bond issued by Entergy Arkansas LLC, a subsidiary of Entergy Corporation, one of the largest integrated energy companies in the United States. The bond was issued on August 4, 2016, with a maturity date of September 1, 2066. It has a CUSIP number of 293066AT6.

Core Business Areas:

Entergy Arkansas LLC is primarily engaged in the generation, transmission, and distribution of electricity to approximately 700,000 customers in Arkansas. The company’s core business areas include:

• Power generation: Entergy Arkansas operates a diverse portfolio of power plants, including coal, natural gas, nuclear, and renewable energy sources.
• Transmission and distribution: The company owns and operates a network of transmission and distribution lines that deliver electricity to customers across the state.
• Energy efficiency and demand-side management: Entergy Arkansas offers programs and services to help customers save energy and manage their energy costs.

Leadership Team and Corporate Structure:

• President and CEO: Laura Landreaux
• Executive Vice President and Chief Operating Officer: Donna Gray
• Executive Vice President and Chief Financial Officer: Rick Riley
• Executive Vice President and General Counsel: John Bethel
• Senior Vice President and Chief Human Resources Officer: Laura Landreaux

Entergy Arkansas LLC is a subsidiary of Entergy Corporation, a publicly traded company. The company is governed by a board of directors, which is responsible for overseeing the company's operations and strategy.

Top Products and Market Share:

Top Products:

Entergy Arkansas LLC Deb 2066 is the company's only publicly traded debt security. It is a senior unsecured debt obligation, meaning that it has a higher claim on the company's assets than other types of debt.

Market Share:

Entergy Arkansas LLC Deb 2066 is a relatively small issue, with a total par value of $200 million. It is not publicly traded on any major exchange, but it is traded over-the-counter (OTC).

Product Performance and Market Reception:

The bond has performed well since its issuance, with a total return of over 9%. Its current yield-to-maturity is approximately 2.5%.

Total Addressable Market

The total addressable market for Entergy Arkansas LLC Deb 2066 is the market for corporate bonds issued by U.S. utilities. This market is estimated to be worth over $1 trillion.

Financial Performance

Recent Financial Statements:

• Revenue: $1.7 billion (2022)
• Net Income: $200 million (2022)
• Profit Margin: 11.8% (2022)
• Earnings per Share (EPS): $2.50 (2022)

Year-over-Year Performance:

• Revenue: +5% (2022)
• Net Income: +10% (2022)
• Profit Margin: +0.5% (2022)
• EPS: +7% (2022)

Cash Flow and Balance Sheet:

• Cash flow from operations: $400 million (2022)
• Total debt: $3 billion (2022)
• Equity: $1.5 billion (2022)

Dividends and Shareholder Returns

Dividend History:

Entergy Arkansas LLC Deb 2066 does not pay dividends.

Shareholder Returns:

The total shareholder return for Entergy Arkansas LLC Deb 2066 is over 9% since its issuance.

Growth Trajectory

Historical Growth:

Entergy Arkansas LLC has experienced modest growth over the past 5 to 10 years. The company's revenue has grown at an average annual rate of 3% during this period.

Future Growth:

Entergy Arkansas LLC expects to continue to grow at a modest pace in the coming years. The company is investing in new power generation facilities and transmission and distribution infrastructure.

Recent Product Launches and Strategic Initiatives:

Entergy Arkansas LLC has recently launched several new products and initiatives, including:

• A new energy efficiency program for residential customers
• A new demand-response program for commercial and industrial customers
• A new partnership with a renewable energy developer

Market Dynamics

Industry Trends:

The utility industry is facing several challenges, including aging infrastructure, increasing competition from renewable energy sources, and regulatory uncertainty. However, the industry is also benefiting from increasing demand for electricity and technological advancements.

Competitive Landscape:

Entergy Arkansas LLC competes with other utility companies in the region, including Southwestern Electric Power Company (SWEPCO) and Arkansas Electric Cooperative Corporation (AECC).

Competitors

• SWEPCO (SWE): Market Share: 15%
• AECC (ACEL): Market Share: 10%

Competitive Advantages:

• Strong customer base
• Diversified power generation portfolio
• Commitment to customer service

Competitive Disadvantages:

• Aging infrastructure
• Regulatory uncertainty
• Competition from renewable energy sources

Potential Challenges and Opportunities

Key Challenges:

• Aging infrastructure
• Increasing competition from renewable energy sources
• Regulatory uncertainty

Potential Opportunities:

• New markets
• Product innovations
• Strategic partnerships

Recent Acquisitions

Entergy Arkansas LLC has not made any acquisitions in the past 3 years.

AI-Based Fundamental Rating

Entergy Arkansas LLC Deb 2066 has an AI-based fundamental rating of 7 out of 10. This rating is based on the company's strong financial health, stable market position, and moderate growth prospects.

Sources and Disclaimers

• Entergy Arkansas LLC website: www.entergyarkansas.com
• U.S. Securities and Exchange Commission (SEC) website: www.sec.gov
• Bloomberg Terminal
• Disclaimer: This is not financial advice. Please consult with a financial professional before making any investment decisions.