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NEW ORLEANS - Entergy Corporation (NYSE:ETR), a utility giant with a market capitalization of $35.49 billion and impressive 62% return over the past year, has completed the sale of its natural gas distribution business to Delta Utilities, a New Orleans-based company backed by Bernhard Capital Partners, the company announced Tuesday. According to InvestingPro analysis, the company appears slightly overvalued at current levels.
The transaction, which received all required federal and state regulatory approvals, includes approximately 3,700 miles of natural gas pipelines and 2,200 miles of service lines. The assets served about 96,000 homes and businesses in the Baton Rouge area and 108,000 homes and businesses in New Orleans.
"This strategic transaction allows us to sharpen our focus on Entergy’s growing electric operations and invest in a stronger, more resilient energy future for the communities we serve," said Drew Marsh, chair and CEO of Entergy. The company’s strong financial position is evidenced by its $5.39 billion EBITDA and consistent dividend payments, which InvestingPro data shows have been maintained for 38 consecutive years with increases in the last 10 years.
Regulatory approvals for the sale came from the Louisiana Public Service Commission, the City of Baton Rouge/East Baton Rouge Parish Metropolitan Council, and the New Orleans City Council.
Delta Utilities now assumes responsibility for the day-to-day service and gas distribution operations previously managed by Entergy. Both companies are working together to ensure a smooth transition for customers, according to the press release statement.
Entergy’s electric service continues to operate through its subsidiaries, with Entergy Louisiana providing electric service to more than 1.1 million customers across 58 parishes and Entergy New Orleans serving more than 209,000 customers in Orleans Parish.
Entergy Corporation, headquartered in New Orleans, is a Fortune 500 company that provides electricity to 3 million customers through its operating companies in Arkansas, Louisiana, Mississippi, and Texas. With annual revenue of $11.93 billion, the company demonstrates solid operational performance. For deeper insights into Entergy’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Entergy Corporation reported its first-quarter earnings for 2025, showing a strong performance in earnings per share (EPS) but a slight miss in revenue. The company achieved an adjusted EPS of $0.82, surpassing the forecast of $0.69, while its revenue was $3.02 billion, slightly below the anticipated $3.08 billion. This mixed performance highlights Entergy’s ability to manage costs effectively despite challenges in revenue growth. Additionally, Entergy completed the physical settlement of forward sale agreements, delivering approximately 15.56 million shares and receiving cash proceeds of around $806 million. This transaction is part of a larger equity distribution program initiated in January 2021. Entergy still holds forward sale agreements for approximately 30.16 million shares, potentially generating $2.3 billion if settled by May 2025. Furthermore, Entergy is optimistic about its growth prospects, maintaining an adjusted EPS guidance with a targeted growth rate of over 8%, supported by strong industrial sales and infrastructure investments. The company’s strategic initiatives, including a $37 billion capital plan through 2028, are expected to bolster long-term growth.
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