Mergers, Acquisitions and Dispositions Disclosures

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

Natural Gas Distribution Businesses

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.

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 agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of Orleans, Louisiana, and Entergy Louisiana agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of East Baton Rouge, Louisiana. The Entergy New Orleans and Entergy Louisiana natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy New Orleans and Entergy Louisiana through June 30, 2025.

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 had 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 were satisfied or, where permissible, waived for both transactions. As described above, the transactions received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses first met the criteria to be classified as held for sale in the quarter ended December 31, 2024, and continued to meet such criteria as of June 30, 2025. As of June 30, 2025, neither Entergy Louisiana nor Entergy New Orleans had recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale was 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 June 30, 2025 and December 31, 2024 included the following amounts:


	June 30, 2025			December 31, 2024
	Entergy	Entergy Louisiana	Entergy New Orleans	Entergy	Entergy Louisiana	Entergy New Orleans
	(In Thousands)			(In Thousands)
Deferred fuel	$5,829	$3,324	$2,505	$5,608	$727	$4,881
Fuel inventory - at average cost	4,828	295	4,533	4,493	702	3,791
Materials and supplies	7,604	1,172	6,432	5,451	1,045	4,406
Prepayments and other	1,341	54	1,287	22	—	22
Total current assets held for sale	$19,602	$4,845	$14,757	$15,574	$2,474	$13,100
Property, plant, and equipment - natural gas	$697,812	$311,898	$385,914	$679,502	$303,193	$376,309
Construction work in progress	2,710	1,730	980	2,959	1,085	1,874
Less - accumulated depreciation and amortization	(283,404)	(141,818)	(141,586)	(276,388)	(139,556)	(136,832)
Other regulatory assets	33,523	6,936	23,667	35,381	8,947	23,682
Goodwill (a)	6,517	—	—	6,474	—	—
Pension and other postretirement assets	15,171	—	19,952	14,663	—	19,499
Other	199	—	199	206	—	206
Total non-current assets held for sale	$472,528	$178,746	$289,126	$462,797	$173,669	$284,738
Accounts payable	$2,945	$295	$2,650	$702	$702	$—
Customer deposits	5,327	2,572	2,755	6,214	1,984	4,230
Taxes accrued	—	—	—	13	13	—
Other	1,352	536	816	1,401	589	812
Total current liabilities held for sale (b)	$9,624	$3,403	$6,221	$8,330	$3,288	$5,042
Regulatory liability for income taxes - net	$28,438	$3,193	$25,245	$31,575	$4,981	$26,594
Other regulatory liabilities	2,579	945	1,634	1,611	1,214	397
Pension and other postretirement liabilities	4,236	4,643	1,610	3,976	4,525	1,197
Other	4,146	1,414	2,732	3,844	1,194	2,650
Total non-current liabilities held for sale (c)	$39,399	$10,195	$31,221	$41,006	$11,914	$30,838

(a) Goodwill was 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 continued to recognize depreciation on the natural gas distribution businesses assets through June 30, 2025 since they received revenues through utility customer rates through the closing of the transaction, and because the final purchase price for the natural gas distribution businesses was 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 and six months ended June 30, 2025 and 2024 is as follows:


	Three Months Ended		Six Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)

Entergy	$9,484	$7,527	$31,500	$27,459

Entergy Louisiana	$2,272	$2,754	$12,047	$12,858

Entergy New Orleans	$7,212	$4,773	$19,453	$14,601

On July 1, 2025, Entergy Louisiana and Entergy New Orleans completed the sale of their natural gas distribution businesses. The Entergy Louisiana natural gas distribution business was sold for a purchase price of $203 million and results in an expected gain of $12 million ($9 million net-of-tax), net of $20 million in transaction costs. The Entergy New Orleans natural gas distribution business was sold for a purchase price of $288 million and results in an expected gain of $5 million ($4 million net-of-tax), net of $19 million in transaction costs. The sale of the natural gas distribution businesses results in an expected gain of $11 million ($6 million net-of-tax) for Entergy, which includes goodwill of $7 million that was attributed to the businesses sold and derecognized following the completion of the sale. Entergy New Orleans deferred $4 million of its respective gain as a regulatory liability, which will be amortized over three years beginning September 2026, to be shared with electric utility customers, as required by the City Council. The sale price is subject to a true-up related to the estimated value of assets and liabilities transferred, which may result in subsequent adjustments to the gain recorded in third quarter 2025. Additionally, as a result of the sale, in third quarter 2025, Entergy New Orleans expects to write-off $12 million of natural gas plant assets that were not included in the sale to Delta Capital Gas Company, LLC, and which will not be recovered. See Note 10 to the financial statements herein for discussion of the tax accounting effects of the sale.

Mergers, Acquisitions and Dispositions Disclosures

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

Natural Gas Distribution Businesses

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.

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 agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of Orleans, Louisiana, and Entergy Louisiana agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of East Baton Rouge, Louisiana. The Entergy New Orleans and Entergy Louisiana natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy New Orleans and Entergy Louisiana through June 30, 2025.

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 had 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 were satisfied or, where permissible, waived for both transactions. As described above, the transactions received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses first met the criteria to be classified as held for sale in the quarter ended December 31, 2024, and continued to meet such criteria as of June 30, 2025. As of June 30, 2025, neither Entergy Louisiana nor Entergy New Orleans had recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale was 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 June 30, 2025 and December 31, 2024 included the following amounts:


	June 30, 2025			December 31, 2024
	Entergy	Entergy Louisiana	Entergy New Orleans	Entergy	Entergy Louisiana	Entergy New Orleans
	(In Thousands)			(In Thousands)
Deferred fuel	$5,829	$3,324	$2,505	$5,608	$727	$4,881
Fuel inventory - at average cost	4,828	295	4,533	4,493	702	3,791
Materials and supplies	7,604	1,172	6,432	5,451	1,045	4,406
Prepayments and other	1,341	54	1,287	22	—	22
Total current assets held for sale	$19,602	$4,845	$14,757	$15,574	$2,474	$13,100
Property, plant, and equipment - natural gas	$697,812	$311,898	$385,914	$679,502	$303,193	$376,309
Construction work in progress	2,710	1,730	980	2,959	1,085	1,874
Less - accumulated depreciation and amortization	(283,404)	(141,818)	(141,586)	(276,388)	(139,556)	(136,832)
Other regulatory assets	33,523	6,936	23,667	35,381	8,947	23,682
Goodwill (a)	6,517	—	—	6,474	—	—
Pension and other postretirement assets	15,171	—	19,952	14,663	—	19,499
Other	199	—	199	206	—	206
Total non-current assets held for sale	$472,528	$178,746	$289,126	$462,797	$173,669	$284,738
Accounts payable	$2,945	$295	$2,650	$702	$702	$—
Customer deposits	5,327	2,572	2,755	6,214	1,984	4,230
Taxes accrued	—	—	—	13	13	—
Other	1,352	536	816	1,401	589	812
Total current liabilities held for sale (b)	$9,624	$3,403	$6,221	$8,330	$3,288	$5,042
Regulatory liability for income taxes - net	$28,438	$3,193	$25,245	$31,575	$4,981	$26,594
Other regulatory liabilities	2,579	945	1,634	1,611	1,214	397
Pension and other postretirement liabilities	4,236	4,643	1,610	3,976	4,525	1,197
Other	4,146	1,414	2,732	3,844	1,194	2,650
Total non-current liabilities held for sale (c)	$39,399	$10,195	$31,221	$41,006	$11,914	$30,838

(a) Goodwill was 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 continued to recognize depreciation on the natural gas distribution businesses assets through June 30, 2025 since they received revenues through utility customer rates through the closing of the transaction, and because the final purchase price for the natural gas distribution businesses was 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 and six months ended June 30, 2025 and 2024 is as follows:


	Three Months Ended		Six Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)

Entergy	$9,484	$7,527	$31,500	$27,459

Entergy Louisiana	$2,272	$2,754	$12,047	$12,858

Entergy New Orleans	$7,212	$4,773	$19,453	$14,601

On July 1, 2025, Entergy Louisiana and Entergy New Orleans completed the sale of their natural gas distribution businesses. The Entergy Louisiana natural gas distribution business was sold for a purchase price of $203 million and results in an expected gain of $12 million ($9 million net-of-tax), net of $20 million in transaction costs. The Entergy New Orleans natural gas distribution business was sold for a purchase price of $288 million and results in an expected gain of $5 million ($4 million net-of-tax), net of $19 million in transaction costs. The sale of the natural gas distribution businesses results in an expected gain of $11 million ($6 million net-of-tax) for Entergy, which includes goodwill of $7 million that was attributed to the businesses sold and derecognized following the completion of the sale. Entergy New Orleans deferred $4 million of its respective gain as a regulatory liability, which will be amortized over three years beginning September 2026, to be shared with electric utility customers, as required by the City Council. The sale price is subject to a true-up related to the estimated value of assets and liabilities transferred, which may result in subsequent adjustments to the gain recorded in third quarter 2025. Additionally, as a result of the sale, in third quarter 2025, Entergy New Orleans expects to write-off $12 million of natural gas plant assets that were not included in the sale to Delta Capital Gas Company, LLC, and which will not be recovered. See Note 10 to the financial statements herein for discussion of the tax accounting effects of the sale.

Mergers, Acquisitions and Dispositions Disclosures

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

Natural Gas Distribution Businesses

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.

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 agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of Orleans, Louisiana, and Entergy Louisiana agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of East Baton Rouge, Louisiana. The Entergy New Orleans and Entergy Louisiana natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy New Orleans and Entergy Louisiana through June 30, 2025.

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 had 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 were satisfied or, where permissible, waived for both transactions. As described above, the transactions received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses first met the criteria to be classified as held for sale in the quarter ended December 31, 2024, and continued to meet such criteria as of June 30, 2025. As of June 30, 2025, neither Entergy Louisiana nor Entergy New Orleans had recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale was 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 June 30, 2025 and December 31, 2024 included the following amounts:


	June 30, 2025			December 31, 2024
	Entergy	Entergy Louisiana	Entergy New Orleans	Entergy	Entergy Louisiana	Entergy New Orleans
	(In Thousands)			(In Thousands)
Deferred fuel	$5,829	$3,324	$2,505	$5,608	$727	$4,881
Fuel inventory - at average cost	4,828	295	4,533	4,493	702	3,791
Materials and supplies	7,604	1,172	6,432	5,451	1,045	4,406
Prepayments and other	1,341	54	1,287	22	—	22
Total current assets held for sale	$19,602	$4,845	$14,757	$15,574	$2,474	$13,100
Property, plant, and equipment - natural gas	$697,812	$311,898	$385,914	$679,502	$303,193	$376,309
Construction work in progress	2,710	1,730	980	2,959	1,085	1,874
Less - accumulated depreciation and amortization	(283,404)	(141,818)	(141,586)	(276,388)	(139,556)	(136,832)
Other regulatory assets	33,523	6,936	23,667	35,381	8,947	23,682
Goodwill (a)	6,517	—	—	6,474	—	—
Pension and other postretirement assets	15,171	—	19,952	14,663	—	19,499
Other	199	—	199	206	—	206
Total non-current assets held for sale	$472,528	$178,746	$289,126	$462,797	$173,669	$284,738
Accounts payable	$2,945	$295	$2,650	$702	$702	$—
Customer deposits	5,327	2,572	2,755	6,214	1,984	4,230
Taxes accrued	—	—	—	13	13	—
Other	1,352	536	816	1,401	589	812
Total current liabilities held for sale (b)	$9,624	$3,403	$6,221	$8,330	$3,288	$5,042
Regulatory liability for income taxes - net	$28,438	$3,193	$25,245	$31,575	$4,981	$26,594
Other regulatory liabilities	2,579	945	1,634	1,611	1,214	397
Pension and other postretirement liabilities	4,236	4,643	1,610	3,976	4,525	1,197
Other	4,146	1,414	2,732	3,844	1,194	2,650
Total non-current liabilities held for sale (c)	$39,399	$10,195	$31,221	$41,006	$11,914	$30,838

(a) Goodwill was 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 continued to recognize depreciation on the natural gas distribution businesses assets through June 30, 2025 since they received revenues through utility customer rates through the closing of the transaction, and because the final purchase price for the natural gas distribution businesses was 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 and six months ended June 30, 2025 and 2024 is as follows:


	Three Months Ended		Six Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)

Entergy	$9,484	$7,527	$31,500	$27,459

Entergy Louisiana	$2,272	$2,754	$12,047	$12,858

Entergy New Orleans	$7,212	$4,773	$19,453	$14,601

On July 1, 2025, Entergy Louisiana and Entergy New Orleans completed the sale of their natural gas distribution businesses. The Entergy Louisiana natural gas distribution business was sold for a purchase price of $203 million and results in an expected gain of $12 million ($9 million net-of-tax), net of $20 million in transaction costs. The Entergy New Orleans natural gas distribution business was sold for a purchase price of $288 million and results in an expected gain of $5 million ($4 million net-of-tax), net of $19 million in transaction costs. The sale of the natural gas distribution businesses results in an expected gain of $11 million ($6 million net-of-tax) for Entergy, which includes goodwill of $7 million that was attributed to the businesses sold and derecognized following the completion of the sale. Entergy New Orleans deferred $4 million of its respective gain as a regulatory liability, which will be amortized over three years beginning September 2026, to be shared with electric utility customers, as required by the City Council. The sale price is subject to a true-up related to the estimated value of assets and liabilities transferred, which may result in subsequent adjustments to the gain recorded in third quarter 2025. Additionally, as a result of the sale, in third quarter 2025, Entergy New Orleans expects to write-off $12 million of natural gas plant assets that were not included in the sale to Delta Capital Gas Company, LLC, and which will not be recovered. See Note 10 to the financial statements herein for discussion of the tax accounting effects of the sale.