Envela's Delta Utilities Acquires Entergy's Natural Gas Business, Expanding Gulf Coast Presence
- Delta Utilities acquired Entergy's natural gas distribution, gaining 200,000 customers and solidifying its market position.
- Backed by Bernhard Capital, Delta Utilities aims to modernize acquired systems and enhance operational efficiency.
- The acquisition aligns with industry trends towards sustainability, positioning Delta Utilities for future growth in the energy sector.
Delta Utilities Expands Footprint in the Natural Gas Sector with Entergy Acquisition
In a significant strategic move within the energy sector, Delta Utilities successfully completes its acquisition of Entergy's natural gas distribution business, which had been a crucial component of Entergy's operations in Louisiana. This transition allows Delta Utilities to take charge of managing the day-to-day operations of approximately 3,700 miles of natural gas pipelines and 2,200 miles of service lines, which previously served around 204,000 homes and businesses in Baton Rouge and New Orleans. The deal, finalized on July 1, 2025, is part of Entergy's broader strategy to concentrate on its electric utility services, reflecting a shift in focus that aligns with the growing demand for cleaner, more reliable energy sources.
Drew Marsh, Entergy's chair and CEO, expresses gratitude to the gas employees for their dedication to service, underscoring the importance of continuity during the transition. He articulates confidence in Delta Utilities' ability to uphold the standards of service that Entergy's customers have come to expect. This acquisition not only enables Entergy to enhance its focus on electric operations but also positions Delta Utilities as a significant player in the Gulf Coast's natural gas market. Following its acquisition of Entergy's gas business, Delta Utilities adds over 200,000 new customers and approximately 200 employees, further solidifying its standing among the top natural gas utilities in the region.
Delta Utilities, backed by Bernhard Capital Partners, has established itself as a formidable entity in the utility landscape, having previously acquired CenterPoint Energy's natural gas systems in Louisiana and Mississippi just months earlier. With these acquisitions, Delta Utilities now serves around 600,000 customers and employs over 800 staff members, showcasing its rapid growth and operational capacity. Jeff Jenkins, founder and partner at Bernhard Capital, highlights the company’s commitment to modernizing the newly acquired utilities while maintaining a seamless transition for customers. This robust expansion emphasizes Bernhard Capital's strategic vision of fostering resilient communities through reliable energy services.
In addition to its operational enhancements, Delta Utilities aims to leverage its financial strengths to drive growth within the natural gas industry, particularly along the Gulf Coast. With a valuation of $1.7 billion, the company is poised to capitalize on emerging opportunities in the energy sector, aligning with the industry’s shift towards sustainability and reliability. Delta Utilities’ commitment to modernizing infrastructure while maintaining customer satisfaction positions it well for future growth in an evolving energy landscape.
As Entergy refocuses its efforts on electric utilities, the sale of its natural gas distribution business marks a pivotal moment in its ongoing evolution. The strategic decision reflects broader trends in the energy industry, where companies increasingly prioritize sustainability and operational efficiency to meet the demands of a changing market. With Delta Utilities stepping in to manage the gas distribution network, the transition promises to enhance service reliability while contributing to the community's energy needs.