First Read: Enagas "Spanish regulator publishes final regulatory documents..."

Research evidence excerpt

First Read: Enagas "Spanish regulator publishes final regulatory documents..."

Global Research

26 June 2026ab

First Read

EquitiesEnagas

Spanish regulator publishes final regulatory Spain

documents for 2027-32 period Gas Utilities

12-month rating Neutral

12m price target €16.80

Final regulatory documents broadly aligned with March draft

Spanish regulator, CNMC, just submitted to the State Council the final proposal for the

regulation for gas transportation and regasification activities in Spain for the 2027-32 Price (25 Jun 2026) €17.88

period. Additionally, the Government has submitted its regulatory proposal for storage RIC: ENAG.MC BBG: ENG SM

activities for the same period. Key changes compared to the draft published in March

Trading data and key metrics

mainly relate to small adjustments in incentives. No changes have been implemented in

the regulated return for the period, initially proposed at 6.46%. Overall expected 52-wk range €17.88-13.02

changes to regulated revenues for Enagas should be immaterial, and broadly in line with Market cap. €4.68b/US$5.33b

the numbers included in our most recent update. We see limited valuation upside Shares o/s 262m (ORD)

following the final regulatory documents, justifying our Neutral rating. Free float 75%

Avg. daily volume ('000) 1,291

Small changes in newly created incentives, IFVA and IDS Avg. daily value (m) €22.1

Main changes to the final draft related to newly created incentives: IFVA - to incentivise Common s/h equity (12/26E) €2.28b

the reliability and value of fully depreciated assets; and IDS - to incentivise new uses of P/BV (12/26E) 2.1x

biogases. On IFVA, the main change pertains to the % of fully depreciated assets needed Net debt to EBITDA (12/26E) 5.3x

to receive the incentive (now at 75% vs.