Entergy Corporation
Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. It generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans. It also engages in the ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides decommissioning services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 25,000 megawatts of electric generating capacity. It delivers electricity to 3.1 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1913 and is headquartered in New Orleans, Louisiana.
What does it do?
Entergy is an electric utility company that powers homes and businesses across Arkansas, Louisiana, Mississippi, and Texas — including the entire city of New Orleans. Think of them as the company that keeps the lights on and the air conditioning running across the Deep South. They own the power plants that generate electricity, the wires that carry it, and the meters that measure it. About 3 million customers depend on Entergy every single day, whether they know the name or not.
Entergy sits at the intersection of two massive trends right now: the AI data center boom and the broader push to modernize America's aging electrical grid. The Gulf Coast region it serves is seeing surging electricity demand from industrial customers, including new data centers and liquefied natural gas export facilities. That makes Entergy one of the utility companies best positioned to grow in a sector that usually just plods along.
How does it make money?
Entergy makes almost all of its money the old-fashioned utility way — charging customers for the electricity it delivers. Revenue grew from $11.9 billion to $12.9 billion in the latest year, a solid 8% jump. The bulk of this comes from regulated retail electricity sales, meaning state regulators set the rates Entergy can charge, which creates very predictable, steady income. A smaller slice comes from selling power wholesale to other utilities and large industrial buyers.
Why do investors care?
The growth story here is really about demand. Entergy's service territory is booming with new industrial projects — data centers, LNG export terminals, and manufacturing plants are all plugging into its grid. The company has outlined a massive multi-billion dollar capital investment plan to upgrade its infrastructure, and in the regulated utility world, spending more on infrastructure typically means regulators allow you to earn more revenue. The key thing that has to go right is that regulators keep approving rate increases to fund this buildout.
Deep Dive
MemberA full investor briefing on Entergy Corporation — history, leadership, risks, and outlook.