Entergy falls on $2.2 bln equity offering

Entergy

06/05/2026 13:53

** Electric utility Entergy's ETR.N shares down 3.6% in premarket trading at $113.10 after overnight follow-on equity offering priced

** New Orleans, Louisiana-based ETR late Tues announced ~19.25 mln shares at $113 for deal size of about $2.175 bln

** Offering priced at 3.7% discount to last sale

** Co entered into 2-yr forward sales agreements with bookrunners Wells Fargo, Citigroup, Barclays and Scotiabank

** Upon any settlement of agreements, co expects to use net proceeds for general purposes, including repayment of commercial paper, outstanding loans under its revolver, or other debt

** With ~457.9 mln shares outstanding as of May 1, per the prospectus, ETR has roughly $54 bln market cap

** The forward sale structure enables the firm to lock in current prices and delays issuing new shares and harvesting proceeds until ETR needs the funding, thus avoiding immediate EPS dilution

** Through Tues close, ETR shares up 27% YTD and well outperforming nearly 9% gain in S&P 500 Utilities index .SPLRCU

** 19 of 25 analysts rate the stock "strong buy" or "buy", 6 rate "hold"; median PT of $126 up from $117 a month ago and $106 on Feb 6, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))