Dominion Energy (D) M&A announcement summary

Deal rationale and strategic fit

• Creates the largest regulated utility and power company in the U.S., serving about 10 million customer accounts across four high-growth states with a combined annual GDP of ~$4 trillion.

• Addresses rapidly rising U.S. power demand, expected to grow six times faster over the next 20 years, and leverages unmatched scale, capital efficiency, and operational expertise.

• Combines complementary strengths in renewables, gas, nuclear, and storage, positioning the company as a leader in nearly every utility category.

• Virtually no operational overlap, enabling a broader growth platform and diversified opportunities for shareholders.

• Anchored by the nation’s largest regulated capital plan, with a $138 billion rate base expected to grow at 11% annually through 2032.

Financial terms and conditions

• Tax-free, all-stock merger with Dominion shareholders receiving 0.8138 shares of NextEra for each Dominion share; pro forma ownership: 74.5% NextEra shareholders, 25.5% Dominion shareholders.

• Enterprise value of $420 billion and market cap of $249 billion.

• Dominion shareholders receive a one-time $360 million taxable cash payment at closing and current quarterly dividend through close.

• $2.25 billion in bill credits for Dominion customers over two years post-close.

• Transaction expected to be immediately accretive to adjusted EPS at closing.

Synergies and expected cost savings

• Significant buying power and capital efficiency expected from $59 billion annual CapEx (2027–2032), leveraging a robust supply chain and shared platforms in technology and data analytics.

• Proven track record of operational performance, with non-fuel O&M costs ~54% lower than national average.

• Enhanced scale expected to drive significant operating and capital efficiencies, lowering customer bills over time.

• Improved credit ratings anticipated, reducing financing costs and supporting affordability.

• Scale enables faster, more efficient project development and grid investments, supporting reliability and affordability.