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Entergy Units Purchase Natural Gas Run Union Power Station

Entergy Corporation’s ETR three affiliates, Entergy Arkansas, Inc., Entergy Louisiana, LLC, and Entergy New Orleans, Inc., acquired the natural gas-powered Union Power Station near El Dorado, AR.

The subsidiaries closed this transaction at a cost of $237 million per unit, subject to adjustments. In Dec 2014, Entergy signed an agreement with Union Power Partners L.P. to take over the units to help meet increasing resource demand in the region. Union Power Partners is an independent power producer wholly owned by Entegra TC LLC.

The Union Power Station with a capacity of 1,980 megawatt (“MW”) had entered commercial service in 2003. This highly efficient natural gas-fired generating facility comprises four combined-cycle, gas-fired generating units, or CCGTs, each with a capacity of 495 MW.

Entergy Arkansas and Entergy New Orleans units acquired one CCGT each, while Entergy Louisiana acquired two CCGTs.

With the regulatory focus on curbing carbon emissions, this acquisition will boost the company’s clean energy resources and drive efficiency.

New Orleans, LA based Entergy is primarily engaged in electric power production and retail distribution of power. The company has 30,000 MW of generating capacity including more than 10,000 MW of nuclear fuel capacity. It distributes electricity to 2.8 million customers in Arkansas, Louisiana, Mississippi and Texas.

Recently, Entergy reported fourth-quarter 2015 operational earnings of $1.58 per share, beating the Zacks Consensus Estimate by 2.6%. The reported number also improved 110.7% from 75 cents per share reported in the year-ago period.

Zacks Rank

 Entergy currently has a Zacks Rank #2 (Buy). Equally ranked stocks in the same space include CMS Energy Corp. CMS, Edison International EIX and CenterPoint Energy, Inc. CNP.

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CMS ENERGY (CMS): Free Stock Analysis Report
 
CENTERPOINT EGY (CNP): Free Stock Analysis Report
 
ENTERGY CORP (ETR): Free Stock Analysis Report
 
EDISON INTL (EIX): Free Stock Analysis Report
 
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