Weekender: What's Baked Into BTM Provider Valuations?

Research evidence excerpt

Weekender: What's Baked Into BTM Provider Valuations?

Equity Research

Industry Update — June 5, 2026

Midstream Energy

Weekender: What's Baked Into BTM Provider

Valuations?

Our Call Michael Blum

BTM power provider equity values are reflecting some, but not all, upside to GW targets. Equity Analyst | Wells Fargo Securities, LLC

Michael.J.Blum@wellsfargo.com | 212-214-5037

We see ~15% upside if BTM providers under coverage (KGS, WMB) can execute on BTM

Praneeth Satishpower targets (GW).

Equity Analyst | Wells Fargo Securities, LLC

Praneeth.Satish@wellsfargo.com | 212-214-8056

What's Baked Into BTM Provider Valuations? As power equipment lead times lengthen Ned Baramov, CFA

and opposition to data centers grows, we expect more hyperscalers to opt for BTM Equity Analyst | Wells Fargo Securities, LLC

power. A field of players has emerged with the market ascribing value to future GW power Ned.Baramov@wellsfargo.com | 212-214-8021

deployments. In this report, we measure how much BTM growth is discounted in BTM Eric Shiu

provider valuations, quantifying upside potential if BTM providers can reach GW targets Associate Equity Analyst | Wells Fargo Securities, LLC

by 2030. Eric.Shiu@wellsfargo.com | 212-214-5038

Jack Farrell, CFA

Our Approach. At a high level, we isolated the value of each company's legacy business Associate Equity Analyst | Wells Fargo Securities, LLC Jack.L.Farrell@wellsfargo.com | 212-214-8012

and then measured how much "BTM value" in equity value and GW is already discounted in

valuations, relative to GW targets. We then compared to this our estimate of total power

business equity value assuming BTM cos reach their stated GW targets by 2030. To note,

this analysis is illustrative only and does not tie to our published ests and PTs. See inside