Entergy Louisiana, LLC COLLATERAL TR MT (ELC) Cash Flow Statement

The 46% year-over-year increase in OCF in 2026Q2, as reported in financial statements, suggests improved collection of fuel and energy charges, though the quarterly pattern remains weather-sensitive. OCF coverage of interest and dividends remains comfortable, with OCF/interest at 6.6x in 2026Q2, indicating that regulated cash flows adequately support fixed obligations.

The CAPEX-to-OCF ratio of 149% in 2026Q2, per financial statements, underscores that the utility is investing well beyond internal cash generation, a pattern consistent with rate base expansion. This elevated investment, up from $2.0B in 2025Q2, appears to be driving the depreciation growth noted in the income statement, but it also widens the external financing gap.

The persistent FCF deficit, averaging over $700M per quarter over the last year, appears to be a structural feature of the CAPEX cycle rather than a liquidity crisis. Net stock issuance of $676M in 2026Q2, as disclosed in financial statements, suggests the parent is injecting equity to maintain the capital structure, while long-term debt issuance of only $1M indicates a preference for equity funding at current terms.

The wide quarterly OCF swings, with 2026Q1 at $829M versus 2026Q2 at $1.9B, appear to be driven by the timing of fuel cost recoveries and seasonal customer collections. These working capital movements are typical for regulated utilities, but the magnitude suggests that weather-normalization mechanisms may be smoothing earnings more than cash flows.

Despite the heavy CAPEX program, dividend coverage has remained above 4x in most quarters, as reported in financial statements, indicating that distributions are well-supported by operating cash flows. The low coverage in 2025Q1 (2.0x) appears to be a seasonal trough rather than a structural concern, given the subsequent recovery to 6.4x.