DTP - Entergy: Moving Strongly Into Renewables But Could Be Unaffordable
- Entergy is joining the movement to increase the presence of renewable electricity generation in the United States.
- The company recently suffered significant damage to its infrastructure from Hurricane Laura but this is a short-term problem.
- The company plans to spend $21 billion over the next four years to build out a renewable infrastructure.
- The company has historically failed to generate any free cash flow and is supporting its dividend by borrowing money, which is not sustainable.
- Entergy has a higher debt load than many of its peers and needs to take steps to reduce this before it becomes appealing for investment.
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Entergy: Moving Strongly Into Renewables But Could Be Unaffordable