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What Entergy (ETR)'s Cost‑Cutting Carbon Capture Partnership With Mitsubishi Means For Shareholders

Simply Wall St · 1d ago
  • In July 2026, Mitsubishi Heavy Industries Group companies and Entergy Corporation signed a memorandum of understanding to develop a roadmap targeting a 50% reduction in the overall costs of integrating carbon capture and storage technology at Entergy’s power generation sites.
  • This collaboration leverages Entergy’s proximity to a major US carbon dioxide pipeline network and favorable geology to promote large-scale, low-carbon power generation using Mitsubishi’s combined gas turbine and carbon capture technologies under a single corporate group.
  • Next, we’ll examine how this push to cut carbon capture and storage costs could influence Entergy’s long-term earnings profile and investment narrative.

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Entergy Investment Narrative Recap

To own Entergy, you generally need to believe in a long runway of regulated grid and generation investment in the Gulf South, supported by constructive regulators and steady demand from industry and population growth. The Mitsubishi CCS roadmap could modestly reinforce that long term decarbonization angle, but the more immediate focus for many shareholders is how Entergy funds its roughly US$40,000,000,000 capital plan without putting too much pressure on the balance sheet or dilution risk in the near term.

The recent US$2,175,000,000 follow on equity offering filing is particularly relevant here, because it shows Entergy leaning on equity markets to help finance that capital program rather than relying solely on additional debt. Set alongside the Mitsubishi CCS agreement, it underlines that the investment story now hinges on how effectively the company can match large clean energy and grid projects with funding, while still maintaining returns that justify the premium valuation some investors are currently paying.

Yet even with these growth projects, investors should still be aware of how exposed Entergy remains to Gulf South weather risk and...

Read the full narrative on Entergy (it's free!)

Entergy's narrative projects $17.0 billion revenue and $2.9 billion earnings by 2029. This requires 8.6% yearly revenue growth and about a $1.1 billion earnings increase from $1.8 billion today.

Uncover how Entergy's forecasts yield a $121.88 fair value, a 6% upside to its current price.

Exploring Other Perspectives

ETR 1-Year Stock Price Chart
ETR 1-Year Stock Price Chart

Five members of the Simply Wall St Community currently see Entergy’s fair value between US$73.47 and US$121.88, highlighting very different expectations. Set against this wide range, the sheer scale of Entergy’s US$40,000,000,000 capital plan raises important questions about funding, returns and how those projects could shape future performance, so it is worth comparing several of these viewpoints before deciding how you see the stock.

Explore 5 other fair value estimates on Entergy - why the stock might be worth as much as 6% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.