What did Entergy sell and to whom?

Entergy New Orleans and Entergy Louisiana sold their regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners, which now operate under the Delta Utilities name.

How much were the transactions valued at?

The base purchase price was $285.5 million for the New Orleans gas business and $198 million for the Baton Rouge gas business, for a combined base of about $483.5 million, subject to certain adjustments.

Does this sale affect Entergy's electric business?

No. The divested businesses were natural gas distribution operations. Entergy says the sale allows it to concentrate on its electric utilities, which continue to serve customers in Louisiana and across its other operating companies.

Did Entergy disclose the financial impact on earnings?

Not in this filing. The 8-K reports only the closing and purchase prices. Any gain or loss, use of proceeds, or effect on earnings would likely appear in Entergy's subsequent quarterly or annual reports.

Were there any regulatory obstacles to closing?

The company states that all required federal and state regulatory approvals were obtained, including from the Louisiana Public Service Commission and the local councils in New Orleans and Baton Rouge, before closing.

ETR 8-K: Acquisitions & Dispositions & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 1, 2025. Cited figures are marked; the original filing is the authoritative source.

Entergy Corporation (NYSE: ETR) disclosed in this 8-K, filed for the July 1, 2025 closing, that its subsidiaries Entergy New Orleans and Entergy Louisiana completed the previously announced sale of their regulated natural gas local distribution company businesses to two affiliates of Bernhard Capital Partners.

The ENO Gas Business (serving Orleans Parish) had a base purchase price of $285.5 million^a, and the ELL Gas Business (serving East Baton Rouge Parish) had a base purchase price of $198 million, both subject to customary adjustments. The combined base consideration is roughly $483.5 million before adjustments. The transaction received all required federal and state approvals, including from the Louisiana Public Service Commission, the Baton Rouge/East Baton Rouge Parish Metropolitan Council, and the New Orleans City Council.

The divested assets include approximately 3,700 miles of gas pipeline and 2,200 miles of service lines, serving roughly 96,000 customers in Baton Rouge and 108,000 in New Orleans. Management framed the sale as a way to sharpen focus on Entergy's electric utility operations, which remain the core of the company. For investors, the filing is primarily a completion notice rather than a financial update: it does not report gain or loss on sale, use of proceeds, or pro forma financial impact.

The divestiture reduces Entergy's gas utility exposure and shifts the portfolio toward regulated electric growth, but the 8-K does not quantify the earnings effect. Those details would typically appear in subsequent periodic reports.

02—Key points

Key Highlights

Closed the sale of Entergy's natural gas distribution businesses in New Orleans and Baton Rouge to Delta Utilities, an affiliate of Bernhard Capital Partners, effective July 1, 2025.
Base purchase price of $285.5 million for the ENO Gas Business (Orleans Parish) and $198 million for the ELL Gas Business (East Baton Rouge Parish), totaling about $483.5 million before adjustments.
Divested roughly 3,700 miles of natural gas pipeline and 2,200 miles of service lines, serving about 204,000 gas customers combined (96,000 in Baton Rouge; 108,000 in New Orleans).
All required federal and state regulatory approvals were received, including from the Louisiana Public Service Commission and the New Orleans and Baton Rouge local councils.
Management says the sale lets Entergy focus on its growing electric utility business, which continues to serve about 1.1 million customers at Entergy Louisiana and 209,000 at Entergy New Orleans.
The 8-K does not disclose gain or loss on sale, use of proceeds, or pro forma financial effects, so the earnings impact is not quantified in this filing.

03—Questions

Frequently Asked Questions

What did Entergy sell and to whom?
Entergy New Orleans and Entergy Louisiana sold their regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners, which now operate under the Delta Utilities name.
How much were the transactions valued at?
The base purchase price was $285.5 million for the New Orleans gas business and $198 million for the Baton Rouge gas business, for a combined base of about $483.5 million, subject to certain adjustments.
Does this sale affect Entergy's electric business?
No. The divested businesses were natural gas distribution operations. Entergy says the sale allows it to concentrate on its electric utilities, which continue to serve customers in Louisiana and across its other operating companies.
Did Entergy disclose the financial impact on earnings?
Not in this filing. The 8-K reports only the closing and purchase prices. Any gain or loss, use of proceeds, or effect on earnings would likely appear in Entergy's subsequent quarterly or annual reports.
Were there any regulatory obstacles to closing?
The company states that all required federal and state regulatory approvals were obtained, including from the Louisiana Public Service Commission and the local councils in New Orleans and Baton Rouge, before closing.

04—Continue

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