D - Quick Take - It Is Good To Be NEEded; D/NEE Mega Deal Highlights Scale Amid Unprecedented Sector Growth

Research evidence excerpt

D - Quick Take - It Is Good To Be NEEded; D/NEE Mega Deal Highlights Scale Amid Unprecedented Sector Growth

Truist Securities

Equity Research Report May 18, 2026

UTILITIES: Power and Utilities Dominion Energy, Inc. (D)

D - Quick Take - It Is Good To Be NEEded; D/NEE Mega Deal Richard Sunderland

212-303-4124 Highlights Scale Amid Unprecedented Sector Growth

Richard.Sunderland@truist.com

All stock transaction announced to combine D and NEE, representing a mega deal

aimed at leveraging scale to address load growth and national infrastructure needs.

Current Price (May 15, $61.73

2026) Marking the surprise of the year, this morning Dominion Energy (D, Hold) and NextEra

Stock Rating HOLD Energy (NEE, Not Rated) announced an all stock transaction to combine as the leading utility platform across total generation, annual capex, rate base, and a number of other categories. Unchanged Playing out with speed from Friday night media reports on company discussions into today's

Price Target $67.00 announcement, we see no questions to strategic rationale of the benefits of scale at this

Unchanged inflection point for the sector with load growth acceleration. However, D's willingness to sell

was unexpected in our view, with the company continuing CVOW execution into 2027 and

recently highlighting growing VA capex tailwinds that all predicated a new, higher growth

outlook at some point next year after hard work in recent years out of D's business review.

4 Page Document With a ~23% premium paid for D (on Friday's close, under the all stock terms), we think

up front value is clear and attractive, consistent with the re-rate possibilities after CVOW

completion in our view. As a result, we understand the trade off of capturing this value through