Naturgy / Enagas Final draft of new regulation: Small positive for Naturgy, small negative for Enagas

Research evidence excerpt

Naturgy / Enagas Final draft of new regulation: Small positive for Naturgy, small negative for Enagas

J P M O R G A N Europe Equity Research

26 June 2026

Naturgy / Enagas

Final draft of new regulation: Small positive for Naturgy,

small negative for Enagas

Today the Spanish regulator (CNMC) has submitted the final drafts of the European Utilities & Clean Energy

ACregulation for the regulatory period 2027-32 to the Council of State. Given the Javier Garrido

precedent from previous regulatory reviews, we would regard these final proposals (34-91) 516-1557

as a very good proxy of the final determinations (the Council of State tends to javier.x.garrido@jpmorgan.com

suggest procedural/legal changes rather than economic changes to the proposals). J.P. Morgan Securities plc

Our initial take is that the final proposal is a small positive for Naturgy, as it Specialist Sales contact details:

increases revenues in the lower demand scenario (although with higher leverage

Ian Mitchell - Specialist Sales -to the actual injection of green gases into the network) and reduces slightly the net European Energy

impact of volumes into revenues, while we view it as a small negative for Enagas (44-20) 7134-1356

due to the reduction of some incentives. Our initial assessment is that the final ian.e.mitchell@jpmorgan.com

determinations could have a positive impact vs the drafts on Naturgy’s EPS of c.

1% in 2027-32 and c. -1/-2% for Enagas. NTGY.MC, NTGY SM

Overweight

In gas distribution (where Naturgy has a c. 70% share of total revenues in Spain) Price (25 Jun 26): €27.80

the regulator has made some changes, not only in its volume projections, but also Price Target (Dec-27): €30.50

in the base for 2026 and therefore the comparison with the draft is less straight-

forward.