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 surging U.S. electricity demand, expected to grow six times faster over the next 20 years, and supports economic development in key states.

• Leverages complementary strengths in renewables, gas, nuclear, and storage, positioning the company as an industry leader with unmatched scale, capital efficiency, and operational expertise.

• 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; combined enterprise value of ~$420 billion and market cap of ~$249 billion.

• NextEra shareholders will own ~74.5% and Dominion shareholders ~25.5% of the combined company.

• Dominion shareholders receive a one-time $360 million taxable cash payment at closing, plus 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 combined annual CapEx of ~$59 billion (2027–2032), driving operating and capital efficiencies.

• Shared platforms in supply chain, technology, and data analytics to enhance efficiency and reduce O&M costs.

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

• $2.25 billion in bill credits for Dominion customers in VA, NC, and SC over two years post-close.

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