Mergers, Acquisitions and Dispositions Disclosures

HELD FOR SALE (Entergy Corporation, Entergy Louisiana, and Entergy New Orleans)

Held for Sale

See Note 14 to the financial statements in the Form 10-K for information regarding the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. The following are updates to that discussion.

Natural Gas Distribution Businesses

On October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP. Under the purchase and sale agreements, Entergy New Orleans has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of Orleans, Louisiana, and Entergy Louisiana has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of East Baton Rouge, Louisiana. The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy Louisiana and Entergy New Orleans.

Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively. In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).

The transactions have two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions are satisfied or, where permissible, waived for both transactions. As described above, the transactions have received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

Under the purchase and sale agreements, the closing of the transactions is not required to occur earlier than six months following the initiation of the Second Phase; however, the parties may agree to close prior to that date. The purchase and sale agreements may be terminated by either party in the event the closing has not occurred prior to October 28, 2025. Neither transaction is subject to a financing condition for the applicable buyer.

As of March 31, 2025 and December 31, 2024, the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses met the criteria to be classified as held for sale. As of March 31, 2025, neither Entergy Louisiana nor Entergy New Orleans has recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale is expected to result in a loss. The assets and liabilities of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses classified as held for sale on Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated balance sheets as of March 31, 2025 and December 31, 2024 included the following amounts:


	March 31, 2025			December 31, 2024
	Entergy	Entergy Louisiana	Entergy New Orleans	Entergy	Entergy Louisiana	Entergy New Orleans
	(In Thousands)			(In Thousands)
Deferred fuel	$5,318	$2,676	$2,642	$5,608	$727	$4,881
Fuel inventory - at average cost	3,506	802	2,704	4,493	702	3,791
Materials and supplies	5,065	1,121	3,944	5,451	1,045	4,406
Prepayments and other	2,009	81	1,928	22	—	22
Total current assets held for sale	$15,898	$4,680	$11,218	$15,574	$2,474	$13,100
Property, plant, and equipment - natural gas	$688,009	$308,239	$379,770	$679,502	$303,193	$376,309
Construction work in progress	3,441	1,287	2,154	2,959	1,085	1,874
Less - accumulated depreciation and amortization	(280,796)	(141,851)	(138,945)	(276,388)	(139,556)	(136,832)
Other regulatory assets	35,040	8,904	23,412	35,381	8,947	23,682
Goodwill (a)	6,403	—	—	6,474	—	—
Pension and other postretirement assets	14,916	—	19,724	14,663	—	19,499
Other	202	—	202	206	—	206
Total non-current assets held for sale	$467,215	$176,579	$286,317	$462,797	$173,669	$284,738
Accounts payable	$802	$802	$—	$702	$702	$—
Customer deposits	6,017	1,809	4,208	6,214	1,984	4,230
Taxes accrued	1,284	1,268	16	13	13	—
Other	1,349	541	808	1,401	589	812
Total current liabilities held for sale (b)	$9,452	$4,420	$5,032	$8,330	$3,288	$5,042
Regulatory liability for income taxes - net	$32,327	$5,418	$26,909	$31,575	$4,981	$26,594
Other regulatory liabilities	2,424	1,850	574	1,611	1,214	397
Pension and other postretirement liabilities	3,988	4,546	1,188	3,976	4,525	1,197
Other	3,610	1,110	2,500	3,844	1,194	2,650
Total non-current liabilities held for sale (c)	$42,349	$12,924	$31,171	$41,006	$11,914	$30,838

(a) Goodwill is allocated to the natural gas distribution business based on its relative fair value compared to the retained portion of the reporting unit.

(b) Included within other current liabilities on the respective consolidated balance sheets.

(c) Included within other non-current liabilities on the respective consolidated balance sheets.

Entergy Louisiana and Entergy New Orleans will continue to recognize depreciation on the natural gas distribution businesses assets since they will continue to receive revenues through utility customer rates until the closing of the transaction, and because the final purchase price for the natural gas distribution businesses will be adjusted by an amount equal to that depreciation, among other adjustments.

The pre-tax income for the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses, excluding interest and corporate allocations, included in Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated income statements for the three months ended March 31, 2025 and 2024 is as follows:



	2025	2024
	(In Thousands)

Entergy	$22,016	$19,932

Entergy Louisiana	$9,775	$10,104

Entergy New Orleans	$12,241	$9,828

Mergers, Acquisitions and Dispositions Disclosures

HELD FOR SALE (Entergy Corporation, Entergy Louisiana, and Entergy New Orleans)

Held for Sale

See Note 14 to the financial statements in the Form 10-K for information regarding the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. The following are updates to that discussion.

Natural Gas Distribution Businesses

On October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP. Under the purchase and sale agreements, Entergy New Orleans has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of Orleans, Louisiana, and Entergy Louisiana has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of East Baton Rouge, Louisiana. The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy Louisiana and Entergy New Orleans.

Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively. In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).

The transactions have two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions are satisfied or, where permissible, waived for both transactions. As described above, the transactions have received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

Under the purchase and sale agreements, the closing of the transactions is not required to occur earlier than six months following the initiation of the Second Phase; however, the parties may agree to close prior to that date. The purchase and sale agreements may be terminated by either party in the event the closing has not occurred prior to October 28, 2025. Neither transaction is subject to a financing condition for the applicable buyer.

As of March 31, 2025 and December 31, 2024, the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses met the criteria to be classified as held for sale. As of March 31, 2025, neither Entergy Louisiana nor Entergy New Orleans has recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale is expected to result in a loss. The assets and liabilities of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses classified as held for sale on Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated balance sheets as of March 31, 2025 and December 31, 2024 included the following amounts:


	March 31, 2025			December 31, 2024
	Entergy	Entergy Louisiana	Entergy New Orleans	Entergy	Entergy Louisiana	Entergy New Orleans
	(In Thousands)			(In Thousands)
Deferred fuel	$5,318	$2,676	$2,642	$5,608	$727	$4,881
Fuel inventory - at average cost	3,506	802	2,704	4,493	702	3,791
Materials and supplies	5,065	1,121	3,944	5,451	1,045	4,406
Prepayments and other	2,009	81	1,928	22	—	22
Total current assets held for sale	$15,898	$4,680	$11,218	$15,574	$2,474	$13,100
Property, plant, and equipment - natural gas	$688,009	$308,239	$379,770	$679,502	$303,193	$376,309
Construction work in progress	3,441	1,287	2,154	2,959	1,085	1,874
Less - accumulated depreciation and amortization	(280,796)	(141,851)	(138,945)	(276,388)	(139,556)	(136,832)
Other regulatory assets	35,040	8,904	23,412	35,381	8,947	23,682
Goodwill (a)	6,403	—	—	6,474	—	—
Pension and other postretirement assets	14,916	—	19,724	14,663	—	19,499
Other	202	—	202	206	—	206
Total non-current assets held for sale	$467,215	$176,579	$286,317	$462,797	$173,669	$284,738
Accounts payable	$802	$802	$—	$702	$702	$—
Customer deposits	6,017	1,809	4,208	6,214	1,984	4,230
Taxes accrued	1,284	1,268	16	13	13	—
Other	1,349	541	808	1,401	589	812
Total current liabilities held for sale (b)	$9,452	$4,420	$5,032	$8,330	$3,288	$5,042
Regulatory liability for income taxes - net	$32,327	$5,418	$26,909	$31,575	$4,981	$26,594
Other regulatory liabilities	2,424	1,850	574	1,611	1,214	397
Pension and other postretirement liabilities	3,988	4,546	1,188	3,976	4,525	1,197
Other	3,610	1,110	2,500	3,844	1,194	2,650
Total non-current liabilities held for sale (c)	$42,349	$12,924	$31,171	$41,006	$11,914	$30,838

(a) Goodwill is allocated to the natural gas distribution business based on its relative fair value compared to the retained portion of the reporting unit.

(b) Included within other current liabilities on the respective consolidated balance sheets.

(c) Included within other non-current liabilities on the respective consolidated balance sheets.

Entergy Louisiana and Entergy New Orleans will continue to recognize depreciation on the natural gas distribution businesses assets since they will continue to receive revenues through utility customer rates until the closing of the transaction, and because the final purchase price for the natural gas distribution businesses will be adjusted by an amount equal to that depreciation, among other adjustments.

The pre-tax income for the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses, excluding interest and corporate allocations, included in Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated income statements for the three months ended March 31, 2025 and 2024 is as follows:



	2025	2024
	(In Thousands)

Entergy	$22,016	$19,932

Entergy Louisiana	$9,775	$10,104

Entergy New Orleans	$12,241	$9,828

Mergers, Acquisitions and Dispositions Disclosures

HELD FOR SALE (Entergy Corporation, Entergy Louisiana, and Entergy New Orleans)

Held for Sale

See Note 14 to the financial statements in the Form 10-K for information regarding the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. The following are updates to that discussion.

Natural Gas Distribution Businesses

On October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP. Under the purchase and sale agreements, Entergy New Orleans has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of Orleans, Louisiana, and Entergy Louisiana has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of East Baton Rouge, Louisiana. The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy Louisiana and Entergy New Orleans.

Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively. In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).

The transactions have two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions are satisfied or, where permissible, waived for both transactions. As described above, the transactions have received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

Under the purchase and sale agreements, the closing of the transactions is not required to occur earlier than six months following the initiation of the Second Phase; however, the parties may agree to close prior to that date. The purchase and sale agreements may be terminated by either party in the event the closing has not occurred prior to October 28, 2025. Neither transaction is subject to a financing condition for the applicable buyer.

As of March 31, 2025 and December 31, 2024, the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses met the criteria to be classified as held for sale. As of March 31, 2025, neither Entergy Louisiana nor Entergy New Orleans has recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale is expected to result in a loss. The assets and liabilities of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses classified as held for sale on Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated balance sheets as of March 31, 2025 and December 31, 2024 included the following amounts:


	March 31, 2025			December 31, 2024
	Entergy	Entergy Louisiana	Entergy New Orleans	Entergy	Entergy Louisiana	Entergy New Orleans
	(In Thousands)			(In Thousands)
Deferred fuel	$5,318	$2,676	$2,642	$5,608	$727	$4,881
Fuel inventory - at average cost	3,506	802	2,704	4,493	702	3,791
Materials and supplies	5,065	1,121	3,944	5,451	1,045	4,406
Prepayments and other	2,009	81	1,928	22	—	22
Total current assets held for sale	$15,898	$4,680	$11,218	$15,574	$2,474	$13,100
Property, plant, and equipment - natural gas	$688,009	$308,239	$379,770	$679,502	$303,193	$376,309
Construction work in progress	3,441	1,287	2,154	2,959	1,085	1,874
Less - accumulated depreciation and amortization	(280,796)	(141,851)	(138,945)	(276,388)	(139,556)	(136,832)
Other regulatory assets	35,040	8,904	23,412	35,381	8,947	23,682
Goodwill (a)	6,403	—	—	6,474	—	—
Pension and other postretirement assets	14,916	—	19,724	14,663	—	19,499
Other	202	—	202	206	—	206
Total non-current assets held for sale	$467,215	$176,579	$286,317	$462,797	$173,669	$284,738
Accounts payable	$802	$802	$—	$702	$702	$—
Customer deposits	6,017	1,809	4,208	6,214	1,984	4,230
Taxes accrued	1,284	1,268	16	13	13	—
Other	1,349	541	808	1,401	589	812
Total current liabilities held for sale (b)	$9,452	$4,420	$5,032	$8,330	$3,288	$5,042
Regulatory liability for income taxes - net	$32,327	$5,418	$26,909	$31,575	$4,981	$26,594
Other regulatory liabilities	2,424	1,850	574	1,611	1,214	397
Pension and other postretirement liabilities	3,988	4,546	1,188	3,976	4,525	1,197
Other	3,610	1,110	2,500	3,844	1,194	2,650
Total non-current liabilities held for sale (c)	$42,349	$12,924	$31,171	$41,006	$11,914	$30,838

(a) Goodwill is allocated to the natural gas distribution business based on its relative fair value compared to the retained portion of the reporting unit.

(b) Included within other current liabilities on the respective consolidated balance sheets.

(c) Included within other non-current liabilities on the respective consolidated balance sheets.

Entergy Louisiana and Entergy New Orleans will continue to recognize depreciation on the natural gas distribution businesses assets since they will continue to receive revenues through utility customer rates until the closing of the transaction, and because the final purchase price for the natural gas distribution businesses will be adjusted by an amount equal to that depreciation, among other adjustments.

The pre-tax income for the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses, excluding interest and corporate allocations, included in Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated income statements for the three months ended March 31, 2025 and 2024 is as follows:



	2025	2024
	(In Thousands)

Entergy	$22,016	$19,932

Entergy Louisiana	$9,775	$10,104

Entergy New Orleans	$12,241	$9,828