NEW ORLEANS - Entergy Corporation (NYSE:ETR) and NextEra Energy Resources LLC, a subsidiary of NextEra Energy Inc . (NYSE:NYSE:NEE), have announced a partnership to develop up to 4.5 gigawatts of new solar generation and energy storage projects. This joint development agreement marks a significant advance in Entergy's renewable energy portfolio expansion efforts across Arkansas, Louisiana, Mississippi, and Texas.
Rod West, group president of utility operations for Entergy, expressed enthusiasm for the collaboration, which aims to meet increasing customer demand for low-cost, renewable energy. Rebecca Kujawa, president and CEO of NextEra Energy Resources, highlighted the sector's pivotal moment, with growing electricity demand expected to be met by renewable generation and storage solutions.
The agreement builds upon the companies' existing relationship, adding to the more than 1.7 gigawatts of renewable projects already in progress with Entergy.
The five-year agreement is set to facilitate the development and construction of new solar and energy storage projects, contributing to a cleaner, more efficient energy landscape. Entergy, a Fortune 500 company serving 3 million customers, has been investing in the reliability and resilience of the energy system while transitioning to sustainable energy solutions.
NextEra Energy Resources stands as a clean energy leader in the U.S., boasting approximately 30,600 megawatts of net generating capacity, and is recognized as the world's largest generator of renewable energy from wind and sun, as well as a leader in battery storage. The company operates emissions-free nuclear power generation facilities and provides a variety of clean energy solutions for emissions reduction goals.
The information in this article is based on a press release.
In other recent news, several analysts have updated their outlook on Entergy Corp , focusing on growth opportunities and financial performance. BMO Capital raised its price target to $120, maintaining an Outperform rating, while Wells Fargo also kept an Overweight rating and adjusted its price target to $125. These changes reflect positive regulatory developments, strong earnings growth, and the company's promising long-term outlook.
The company reported adjusted earnings per share of $1.08 for the first quarter of 2024 and reaffirmed their full-year guidance for 2024.
Mizuho raised its price target to $114, anticipating that Entergy will settle its SERI litigation and improve its credit metrics. Meanwhile, KeyBanc increased its price target to $123, citing the company's grid hardening efforts and regulatory clarity.
These recent developments provide investors with an insight into Entergy's current position and future trajectory.
InvestingPro Insights
Entergy Corporation (NYSE:ETR) has recently made headlines with its strategic partnership to boost its renewable energy capabilities. As investors consider the potential impact of this move, certain financial metrics and expert analyses from InvestingPro provide a clearer picture of the company's current standing and future prospects.
InvestingPro Data shows that Entergy has a market capitalization of $23.46 billion, reflecting its significant presence in the utility sector. The company's P/E ratio stands at a modest 11.03, suggesting that its stock may be undervalued when considering its near-term earnings growth. Adjusted for the last twelve months as of Q1 2024, the P/E ratio is even more attractive at 10.25. Moreover, Entergy's dividend yield as of day 159 of 2024 is an appealing 4.11%, which is particularly noteworthy given that the company has raised its dividend for 9 consecutive years and has maintained dividend payments for an impressive 37 years.
InvestingPro Tips highlight several key points for investors. Entergy operates with a significant debt burden, which is a critical factor to consider when evaluating the company's financial health. However, analysts remain optimistic about Entergy's profitability, predicting the company will be profitable this year and noting that it has been profitable over the last twelve months. Additionally, despite net income expectations to drop this year, the company's long history of dividend payments may offer some assurance to income-focused investors.
For those interested in gaining deeper insights into Entergy Corporation, InvestingPro offers additional tips that delve into the company's financials, market performance, and strategic outlook. Investors can unlock these valuable tips and analytics by visiting https://www.investing.com/pro/ETR and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With several more tips available on InvestingPro, investors have the opportunity to make more informed decisions backed by comprehensive data and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.