Launching on Gas LDCs and Further Rounding Out Electric Utility/IPPCoverage; It’s Not All About the Electrics!

Research evidence excerpt

Launching on Gas LDCs and Further Rounding Out Electric Utility/IPPCoverage; It’s Not All About the Electrics!

Equity Research

Industry Update — May 11, 2026

Natural Gas LDCs

Launching on Gas LDCs and Further Rounding

Out Electric Utility/IPPCoverage; It’s Not All

About the Electrics!

We See Select Opportunities in The Pipe

Our Call Constantine Lednev

The utility sector investing thematics continue to skew toward growth and data center Equity Analyst | Wells Fargo Securities, LLC

Constantine.Lednev@wellsfargo.com | 212-214-5438

exposed names, but as we predominately expand coverage into the Gas LDC space, we

Shahriar (Shar) Pourreza, CFAsee some select opportunities to find GARP and/or undervalued assets. LOC distribution

Equity Analyst | Wells Fargo Securities, LLC

adds 4 OW, 2 EW & 2 UW—lead gas coverage, Constantine Lednev. Separately, we add to Shahriar.Pourreza@wellsfargo.com | 212-214-5422

existing team coverage with one water (HTO w/ EW), one IPP (CPX w/ EW) & one electric Alexander Calvert(AQN w/ EW)—lead coverage & sector head, Shar Pourreza Associate Equity Analyst | Wells Fargo Securities, LLC

Alexander.J.Calvert@wellsfargo.com | 212-214-5434

Overall, our stance remains skewed positive on the group, but with the LOC today we Whitney Mutalemwa

are more nimble / selective with OW ratings and see some instances where stocks Associate Equity Analyst | Wells Fargo Securities, LLC

may lag peers (largely valuation calls). Our Gas LDC Launch ratings distribution includes: Whitney.Mutalemwa@wellsfargo.com | 212-214-6428

1) OW on NJR, SR, SWX and UGI; 2) EW on CPK, UTL; and 3) UW on NWN and OGS. In Anders Myhre

the LDC space we are less “barbell” and more focused on underappreciated value vs. our Associate Equity Analyst | Wells Fargo Securities, LLC