Entergy has finalised the sale of its natural gas distribution business to Bernhard Capital Partners-backed Delta Utilities.

Bernhard Capital Partners is an infrastructure-focused private equity management company.

Valued at approximately $484m in cash, the transaction sees Delta Utilities immediately taking over the daily operations and service responsibilities of the gas distribution networks previously managed by Entergy.

The assets encompass 3,700 miles of natural gas pipelines and 2,200 miles of service lines.

The net proceeds from the sale will be directed towards bolstering Entergy's financial position. Specifically, the funds will be allocated to debt repayment and to support capital investments in its expanding electric utility business, which remains customer-focused.

Entergy CEO and chair Drew Marsh said: "Today marks a major milestone as we complete the transition of our natural gas business to Delta Utilities.

"I want to especially thank our dedicated gas employees who have worked tirelessly to ensure safe, reliable service to our gas customers. We are confident Delta Utilities will continue that commitment."

The deal was initially agreed upon in October 2023. Entergy's gas operations cater to 96,000 homes and businesses in the Baton Rouge area, along with approximately 108,000 in New Orleans.

The completion of this transaction follows the receipt of all necessary approvals from federal and state regulatory bodies, including the Louisiana Public Service Commission, the City of Baton Rouge/East Baton Rouge Parish Metropolitan Council, and the New Orleans City Council.

Marsh added: "This strategic transaction allows us to sharpen our focus on Entergy's growing electric operations and invest in a stronger, more resilient energy future for the communities we serve."