Jenny Harrington, CEO, Gilman Hill Asset ManagementDominion EnergyDBUYAug 07, 2026
Nextera & Dominion
She owns both, and they're merging. Definitely, there will be a regulatory fight. When the deal was announced D share rose 10% and NEE fell 10%. She bought the NEE convertibles (7% dividend). NEE has 8-9% earnings growth and the deal will improve that; trades at 18x PE. Synergies will happen. If the deal doesn't happen, then fine, NEE shares will recover 10%.
(A Top Pick Feb 21/07. Up 2% including dividends.)Thought there would be more of a catalyst by selling their oil/gas properties, which they did, but management paid themselves $16 million in bonuses. Now might be an interesting time to look at this.
A US utility which also has E & P properties that they are looking to sell and expecting $16 billion for it. Intend to buy back stock and pay down debt. Negotiating an advanced agreement with Virginia regulators to get additional upside in cap return.
4% dividend. Likes its diversity of utility, pipeline and liquefied natural gas terminals. Also has 6.2 TCF of gas and oil equivalent. Cheaper than some of its peers.
Q:"What companies could profit from liquid natural gas?" A:"You want to focus on some of the utility names. It's only 3% of the market and there are large groups opposing shipments."
Some of the diversified utilities are well-positioned. Their rate structure is based on a cost plus so oil prices do not affect them. As the economy grows, more power will be required.
As a utility, it has reasonable downside protection. Has a gas arm with substantial gas fields, which gives it a diversified earnings base. Also has one of four LNG terminals in the US, which gives it somewhat of a monopoly.
She owns both, and they're merging. Definitely, there will be a regulatory fight. When the deal was announced D share rose 10% and NEE fell 10%. She bought the NEE convertibles (7% dividend). NEE has 8-9% earnings growth and the deal will improve that; trades at 18x PE. Synergies will happen. If the deal doesn't happen, then fine, NEE shares will recover 10%.