Meta Partners with Entergy for New Gas Plants
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy ETR?
Source: seekingalpha
- Large-Scale Project: Meta Platforms has agreed to finance the construction of seven natural gas plants to support the Hyperion data center in Louisiana, providing a total capacity of 5.2 GW, which will significantly enhance the region's electricity supply.
- Customer Cost Savings: Entergy anticipates that the agreement will deliver over $2 billion in customer savings over 20 years, demonstrating the project's economic benefits and long-term commitment to its customers.
- Infrastructure Development: The project includes the construction of 240 miles of transmission lines connecting south Louisiana to north Louisiana and Arkansas, along with enhancements in battery storage and nuclear power, further improving the reliability of the power network.
- Regulatory Approval Progress: Entergy has received state regulatory approval to build three natural gas plants expected to generate 2.3 GW of electricity for Meta's data center, indicating that the project's advancement aligns with regulatory requirements and feasibility.
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Analyst Views on ETR
Wall Street analysts forecast ETR stock price to rise
15 Analyst Rating
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 102.860
Low
86.00
Averages
103.87
High
115.00
Current: 102.860
Low
86.00
Averages
103.87
High
115.00
About ETR
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. The Company operates primarily through a single segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans. The Utility segment includes five retail electric utility subsidiaries: Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, and Entergy Texas, Inc. These companies generate, transmit, distribute, and sell electric power to retail and wholesale customers in Arkansas, Louisiana, Mississippi, and Texas. The Company owns and operates power plants with approximately 25,000 MW of electric generating capacity. It delivers electricity to approximately three million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Meta Partners with Entergy for New Gas Plants
- Large-Scale Project: Meta Platforms has agreed to finance the construction of seven natural gas plants to support the Hyperion data center in Louisiana, providing a total capacity of 5.2 GW, which will significantly enhance the region's electricity supply.
- Customer Cost Savings: Entergy anticipates that the agreement will deliver over $2 billion in customer savings over 20 years, demonstrating the project's economic benefits and long-term commitment to its customers.
- Infrastructure Development: The project includes the construction of 240 miles of transmission lines connecting south Louisiana to north Louisiana and Arkansas, along with enhancements in battery storage and nuclear power, further improving the reliability of the power network.
- Regulatory Approval Progress: Entergy has received state regulatory approval to build three natural gas plants expected to generate 2.3 GW of electricity for Meta's data center, indicating that the project's advancement aligns with regulatory requirements and feasibility.
See More
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- Stock Price Surge: Entergy Corporation (ETR) shares rose approximately 4% in Friday morning trading, currently priced at $107.97, reflecting a 4.99% increase from the opening price of $102.33.
- New Agreement: Entergy Louisiana has entered into an additional agreement with Meta to support a hyperscale data center in Northeast Louisiana, expected to deliver approximately $2 billion in customer savings over 20 years, enhancing the company's competitive edge.
- Historical Trading Range: Over the past year, Entergy's stock has traded between $75.57 and $107.93, with the current price nearing the yearly high, indicating strong market performance and investor confidence.
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See More
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- Market Sentiment Declines: The S&P 500 and Nasdaq 100 fell by 0.79% and 1.12%, respectively, reaching 6.75-month lows, reflecting investor concerns about the global economic outlook amid escalating tensions in Iran.
- Rising Inflation Expectations: The University of Michigan's consumer sentiment index was revised down to 53.3 from 55.5, below expectations, while 1-year inflation expectations increased to 3.8%, indicating market fears of rising prices that could prompt the Fed to tighten monetary policy.
- Surging Energy Prices: Crude oil prices rose over 3% due to disruptions in global oil supply caused by the Iran conflict, with the IEA warning that the war could cut global oil supply by 8 million barrels per day, exacerbating inflationary pressures.
- US-China Trade Tensions: China launched investigations into US trade practices in retaliation for similar probes by the Trump administration, potentially impacting global supply chains and increasing market uncertainty, further undermining investor confidence.
See More
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- Investor Confidence Boost: As energy prices stabilize and signs of economic recovery emerge, investor confidence in the energy sector has strengthened, potentially attracting more capital into the field and further boosting stock prices.
- Positive Industry Outlook: Analysts indicate that with the gradual recovery of the global economy, energy demand is expected to continue growing, particularly in the integration of renewable and traditional energy sources, which may present new growth opportunities for related companies.
- Supportive Policy Factors: Government support policies for the energy sector, including subsidies for renewable energy and reasonable regulation of traditional energy, may create a favorable environment for the long-term development of the industry, thereby enhancing investor confidence.
See More
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- Entergy Stock Surge: Entergy's stock jumped over 8% after announcing a partnership with Meta, which is expected to save Louisiana customers approximately $2 billion over 20 years, significantly enhancing the company's competitive position in the energy market.
- Carnival Lowers Profit Guidance: Carnival revised its full-year adjusted profit forecast down to about $2.21 per share from $2.48, resulting in a more than 3% drop in its stock price and causing peers like Norwegian Cruise Line and Royal Caribbean to experience similar declines.
- Meta Stock Decline: Meta's shares fell over 3% due to losing two pivotal court cases and announcing layoffs, leading to an 11% drop over the week, highlighting the legal and operational challenges the company is currently facing.
- Argan Exceeds Earnings Expectations: Argan reported fourth-quarter earnings of $3.47 per share on revenue of $262.1 million, surpassing analyst expectations, which led to a 35% increase in its stock price, showcasing its strong market performance and growth potential.
See More
Meta Partners with Entergy for New Gas Plants
- Large-Scale Project: Meta Platforms has agreed to finance the construction of seven natural gas plants to support the Hyperion data center in Louisiana, providing a total capacity of 5.2 GW, which will significantly enhance the region's electricity supply.
- Customer Cost Savings: Entergy anticipates that the agreement will deliver over $2 billion in customer savings over 20 years, demonstrating the project's economic benefits and long-term commitment to its customers.
- Infrastructure Development: The project includes the construction of 240 miles of transmission lines connecting south Louisiana to north Louisiana and Arkansas, along with enhancements in battery storage and nuclear power, further improving the reliability of the power network.
- Regulatory Approval Progress: Entergy has received state regulatory approval to build three natural gas plants expected to generate 2.3 GW of electricity for Meta's data center, indicating that the project's advancement aligns with regulatory requirements and feasibility.
See More
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- Market Decline: The S&P 500 index fell by 0.74% and the Nasdaq 100 dropped by 0.94%, reflecting investor concerns over the prolonged Iran war, which may impact future investment decisions and market stability.
- Surging Energy Prices: The International Energy Agency warns that the ongoing conflict could disrupt global oil supply by 8 million barrels per day, potentially pushing crude prices above the 2008 record high of nearly $150 per barrel, thereby exacerbating inflationary pressures.
- Rising Bond Yields: The 10-year U.S. Treasury yield reached an 8.25-month high of 4.48%, indicating heightened expectations for future interest rate hikes, which could compel the Federal Reserve to adopt a tighter monetary policy to combat persistent inflation.
- Escalating U.S.-China Trade Tensions: China has launched investigations into U.S. trade practices, targeting restrictions on Chinese goods, which may further escalate trade frictions and disrupt global supply chain stability.
See More
Entergy Partners with Meta for Data Center Support
- Stock Price Surge: Entergy Corporation (ETR) shares rose approximately 4% in Friday morning trading, currently priced at $107.97, reflecting a 4.99% increase from the opening price of $102.33.
- New Agreement: Entergy Louisiana has entered into an additional agreement with Meta to support a hyperscale data center in Northeast Louisiana, expected to deliver approximately $2 billion in customer savings over 20 years, enhancing the company's competitive edge.
- Historical Trading Range: Over the past year, Entergy's stock has traded between $75.57 and $107.93, with the current price nearing the yearly high, indicating strong market performance and investor confidence.
- Customer Savings: This agreement is expected to provide significant long-term economic benefits to Entergy Louisiana customers, in addition to the previously announced $650 million savings, further solidifying the company's position in the energy market.
See More
