Incremental Colour on DC Opportunities in FL; NMGC Close Expected Mid 2026

Research evidence excerpt

Incremental Colour on DC Opportunities in FL; NMGC Close Expected Mid 2026

TD Cowen Emera Inc.

Global Research May 11, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

Our BUY rating is driven by our view that Emera shares provide investors with both meaningful ■ Ongoing execution of the company's

exposure to one of the most attractive jurisdictions for regulated utilities and room for further 2026-2030 capital plan.

valuation expansion. Florida is among the most attractive jurisdictions in North America ■ Completion of the sale of New Mexico Gas

for investor-owned utilities, due to both its regulatory dynamics and its strong outlook for (early 2026 close).

continued customer growth. Emera is trading at a modest discount compared with our ■ Updated timeline and clarity of outcomes

Canadian large-cap utility coverage universe. We believe that Emera’s shares warrant a higher relating to existing regulatory processes.

valuation, given its heavy weight towards Florida, substantial weighting towards electricity, and ■ Decisions on rate cases

solid outlook for rate base and EPS growth relative to the peer group. ■ Potential changes to policy/regulation.

Base Case Assumptions Upside Scenario Downside Scenario

■ Continued rate base growth in line with ■ More favourable weather trends ■ Low energy usage due to weather/market

the company's most recent capital plan ■ Favourable major regulatory and/or pricing/outages

■ Benign rate environment policy changes ■ Regulatory decisions are well below

■ New rates and effective date of new ■ Higher rate base growth expectations

rates at pending utility GRAs or filed ■ Lower interest rates ■ Unfavourable major regulatory/policy

settlements are approved largely in ■ Less ATM usage than implied by the changes