Entergy has completed the sale of its natural gas distribution business to Delta Utilities, a New Orleans-based company backed by Bernhard Capital Partners.
The deal, worth approximately $484m in cash, was finalised after receiving the necessary federal and state regulatory approvals.
Delta Utilities now assumes control over daily service and gas distribution operations previously managed by Entergy through Entergy Louisiana and Entergy New Orleans.
The acquisition involves assets that include approximately 5,955km of natural gas pipelines and 3,541km of service lines.
Entergy Louisiana’s gas division serves around 96,000 homes and businesses in the Baton Rouge area, while Entergy New Orleans caters to about 108,000 residences and commercial properties in New Orleans.
In total, Delta Utilities will accommodate more than 200,000 new residential and commercial customers and take on approximately 200 employees from Entergy.
Entergy chair and CEO Drew Marsh said: “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.”
Delta Utilities is now set to serve approximately 600,000 customers across Louisiana and Mississippi. This expansion follows their earlier acquisition of CenterPoint Energy’s operations in these states, integrating an additional 380,000 customers and 500 employees into its network.
The company currently operates about 28,968km of pipeline across 37 parishes in Louisiana and 35 counties in Mississippi.
Delta Utilities CEO Tim Poché said: “Every level of our organisation remains focused on safe operations and a high-quality customer experience during this important transition.
“Completing this acquisition underscores our deep investment in Louisiana and represents a major step toward developing modern, multi-state natural gas utilities that foster stronger, more resilient communities. We’re thankful for the New Orleans City Council and Louisiana Public Service Commission’s continued partnership to safeguard reliable and affordable energy for these communities.”
