NEE changes
Pick any two versions below to diff them.
- Price
- $81.90 → $85.99(+5.0%)
- Thesis
- The market prices NextEra Energy for the cost and the risk of its combination with Dominion Energy. added: Each Dominion Energy removed: shareholders added: share will get 0.8138 NextEra Energy shares and added: an equal part of a removed: share added: total cash payment of $360 million removed: in cash for each added: at closing. Dominion removed: share, and they added: Energy shareholders will own about 25.5% of the combined company. The deal needs approvals from the utility commissions of Virginia, North Carolina and South Carolina, the Federal Energy Regulatory Commission (FERC), the Nuclear Regulatory Commission (NRC) and the antitrust agencies. To win support in Virginia, the companies doubled the residential bill credits from two years to four years in September 2026. If the deal fails in some cases, NextEra Energy must pay a termination fee of $4.8 billion or $6.5 billion. The company also carries large debt: $114 billion at September 30, 2026, up from $96 billion at the end of 2025, to fund about $12 billion of FPL capital spending a year and its renewables backlog. For the gap to close, three things must be true. The state commissions and FERC must approve the deal without conditions that remove its value. The companies expect final orders in Virginia and South Carolina in January 2027 and a close in the second half of 2027. Adjusted EPS must keep growing at the target rate of 8% or more a year through 2032, as it did with 9.7% growth in Q3 2026. FPL must sign at least one large-load contract, such as a data center, by the end of 2026, as it said in July 2026. The Virginia and South Carolina orders in January 2027 are the next main tests, and the North Carolina review follows from February 2027. If they pass, the gap can close over the next four to six quarters. The main reason it may not close is a Virginia approval with large customer concessions, which reduces the value of the deal for shareholders.