8-K: Entergy Completes $483.5 Million Sale of Natural Gas Distribution Businesses to Bernhard Capital Partners Affiliates

Entergy Corporation has successfully completed the sale of its natural gas distribution businesses in Louisiana to affiliates of Bernhard Capital Partners for a combined base purchase price of $483.5 million, sharpening its focus on electric utility operations.

Summary

• Entergy New Orleans, LLC and Entergy Louisiana, LLC completed the sale of their regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management, LP.
• The transactions closed on July 1, 2025.
• Delta New Orleans Gas Company, LLC acquired Entergy New Orleans' gas business serving customers in the Parish of Orleans, Louisiana.
• Delta Capital Gas Company, LLC acquired Entergy Louisiana's gas business serving customers in the Parish of East Baton Rouge, Louisiana.
• The base purchase price for the Entergy New Orleans gas business was $285.5 million, and for the Entergy Louisiana gas business was $198 million, both subject to certain adjustments.
• The divested assets include approximately 3,700 miles of natural gas pipelines and 2,200 miles of service lines.
• Entergy Louisiana's gas business served approximately 96,000 homes and businesses in the Baton Rouge area, and Entergy New Orleans' gas business served approximately 108,000 homes and businesses in New Orleans.
• All required federal and state regulatory approvals were received, including from the Louisiana Public Service Commission, the City of Baton Rouge/East Baton Rouge Parish Metropolitan Council, and the New Orleans City Council.

Sentiment

Score: 8

Explanation: The completion of the sale of non-core natural gas assets allows Entergy to focus on its growing electric utility business and invest in future energy resilience, which is a positive strategic move. The transaction was previously disclosed and approved, indicating a well-managed process.

Positives

• Completion of a strategic divestiture allows Entergy to sharpen its focus on its growing electric utility business.
• The sale provides capital that can be invested in a stronger, more resilient energy future for the communities served by Entergy's electric operations.
• The transaction received all necessary regulatory approvals, indicating a smooth process.
• Ensures continued service for gas customers under Delta Utilities.

Future Outlook

The transaction allows Entergy to sharpen its focus on its growing electric operations and invest in a stronger, more resilient energy future for the communities it serves. Both Entergy and Delta Utilities are working together to ensure a smooth and seamless transition for gas customers.

Management Comments

• Today marks a major milestone as we complete the transition of our natural gas business to Delta Utilities.
• I want to especially thank our dedicated gas employees who have worked tirelessly to ensure safe, reliable service to our gas customers. We are confident Delta Utilities will continue that commitment.
• 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.

Industry Context

This divestiture aligns with a broader trend among diversified utilities to streamline operations and focus on core competencies, often shifting towards electric infrastructure and cleaner energy generation. By divesting its gas distribution assets, Entergy is concentrating on its electric utility business, which includes investments in modern natural gas, nuclear, and renewable energy, reflecting a strategic pivot common in the evolving energy landscape.

Comparison to Industry Standards

• The document does not provide specific comparable companies, projects, or results to assess the sale price or strategic move against global benchmarks.

Stakeholder Impact

• Shareholders: Potential positive impact due to strategic focus on electric business and capital for future investments.
• Employees: Gas employees are thanked and transition to Delta Utilities, implying a change in employer for those involved in the gas business.
• Customers (Gas): Service will now be managed by Delta Utilities, with a stated commitment to a smooth transition.
• Customers (Electric): Expected to benefit from Entergy's sharpened focus and investments in electric infrastructure.

Next Steps

• Entergy will continue to focus on its growing electric operations and invest in a stronger, more resilient energy future.
• Both Entergy and Delta Utilities will work together to ensure a smooth and seamless transition for gas customers in Baton Rouge and New Orleans.

Key Dates

Recommendation

Keywords

Entergy, ETR, Entergy Louisiana, Entergy New Orleans, Bernhard Capital Partners, Delta Utilities, natural gas distribution, asset sale, divestiture, utility, energy, Louisiana, Baton Rouge, New Orleans, regulated business