Entergy Divests Gas Business to Focus on Electric Operations and Sustainable Energy Future
- Entergy sold its natural gas distribution business to focus on electric utility operations and meet growing energy demands.
- The sale allows Entergy to invest in cleaner energy sources and infrastructure improvements for its electric services.
- Entergy remains committed to community support, contributing over $100 million annually through philanthropy and volunteer initiatives.
### Entergy's Strategic Shift: Focusing on Electric Operations
Entergy Corporation, a leading utility provider across the southern United States, takes a significant step towards enhancing its operational focus by completing the sale of its natural gas distribution business to Delta Utilities. This transition, finalized on July 1, 2025, allows Entergy to streamline its resources and concentrate on its expanding electric utility operations, crucial for meeting the growing energy demands of its customer base. The divestiture includes management of approximately 3,700 miles of natural gas pipelines and 2,200 miles of service lines that previously serviced over 200,000 residential and commercial customers in the Baton Rouge and New Orleans areas.
Drew Marsh, Entergy's chair and CEO, expresses confidence in Delta Utilities' capability to uphold the level of service customers expect, acknowledging the dedication of Entergy's gas employees throughout the transition. This sale aligns with Entergy's strategic vision to enhance the reliability and sustainability of its energy offerings. With the Louisiana Public Service Commission and local city councils granting all necessary regulatory approvals, Entergy can now focus on investing in cleaner energy sources and infrastructure improvements that bolster its electric services, which currently reach over 3 million customers across four states.
As Entergy shifts its attention towards electricity, the company remains committed to community support and resilience, contributing over $100 million annually through philanthropy and volunteer initiatives. This realignment significantly positions Entergy to tackle the challenges of the energy sector, including the transition to renewable energy sources and maintaining affordable rates for its customers. By divesting from natural gas operations, Entergy aims to foster a more sustainable energy future while continuing to provide reliable electric service to its growing customer base.
### Delta Utilities Expands Its Footprint
The acquisition of Entergy's natural gas distribution assets significantly bolsters Delta Utilities' customer base and operational capabilities. Following this deal, Delta Utilities not only adds over 200,000 customers but also increases its workforce by approximately 200 employees, enhancing its operational capacity for service delivery. This acquisition comes on the heels of Delta Utilities' earlier purchase of CenterPoint Energy's natural gas systems, further solidifying its presence in the Gulf Coast energy market.
With these strategic acquisitions, Delta Utilities emerges as one of the top natural gas utility providers in the region, now serving around 600,000 customers across Louisiana and Mississippi. Jeff Jenkins, Founder and Partner at Bernhard Capital, underscores the importance of maintaining the legacy of service excellence established by Entergy while implementing immediate modernizations to improve operational efficiencies. As Delta Utilities positions itself for future growth, it aims to leverage its financial and operational strengths to drive advancements in the natural gas sector.
