Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 333

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 333
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 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 EndedSix Months Ended2025202420252024(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.

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In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, the accompanying unaudited financial