Dominion Energy, Inc.

(New York Stock Exchange)
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Bullish +75

This Is the First Energy Stock I Plan to Buy in June (Hint: It's Not ExxonMobil)

AI-generated analysis

πŸ“ˆ NextEra Energy is set to merge with Dominion Energy in a $67 billion deal to become the world's largest regulated electric utility.

🏭 The combined entity will serve 10 million customers across four of the U.S.'s fastest-growing states and lead in renewable energy, battery storage, gas power, and nuclear production.

⚑ U.S. electricity demand is forecast to grow by 60% over the next 20 years, driven by AI data centers, electric vehicles, and advanced manufacturing.

πŸ€– Dominion Energy operates utilities in Virginia, North Carolina, and South Carolina, where Virginia alone needs over 33 gigawatts of grid power by 2030 for data centers.

πŸ“ˆ NextEra Energy now expects to grow its adjusted earnings per share by more than 9% annually through 2032 following the merger.

πŸ’‘ The author plans to buy NextEra Energy in June, viewing it as the "ExxonMobil of the utility sector" and a key play for the AI era.

πŸ“‰ Despite ExxonMobil being the largest U.S. energy company by market cap, the author does not plan to add it to their portfolio this month.

πŸ”‹ NextEra Energy is already the largest U.S. utility by enterprise value at over $300 billion before the merger.

πŸ—οΈ The larger scale of the combined company will enable more efficient buying, building, financing, and operating of energy infrastructure.

πŸ“Š The Motley Fool Stock Advisor team recently identified 10 best stocks for investors to buy now, but NextEra Energy was not included in that list.

πŸ“ˆ Historical examples show Stock Advisor's total average return is 978%, significantly outperforming the S&P 500's 211% return.

⚠️ Investors are reminded that Matt DiLallo and The Motley Fool have positions in NextEra Energy and Dominion Energy, creating a potential conflict of interest.

πŸ“… Stock Advisor returns data is as of May 31, 2026, according to the article's disclosure.

Bullish Signals
  • NextEra Energy is merging with Dominion Energy to create the world's largest regulated electric utility, enhancing its scale and growth profile.
  • The combined company will service 10 million utility customers across four of the country's fastest-growing states.
  • NextEra Energy will become the world's largest renewable energy producer and battery storage operator, as well as the top U.S. gas power producer.
  • Forecasters expect U.S. electricity demand to grow by 60% over the next 20 years, driven by AI data centers, electric vehicles, and advanced manufacturing.
  • NextEra Energy now expects to grow its adjusted earnings per share by more than 9% annually through 2032 following the merger.
  • Data centers in Virginia will need more than 33 gigawatts of grid power by 2030, double this year's level, providing a significant growth opportunity.
  • The larger scale of the combined company will enable NextEra Energy to buy, build, finance, and operate more efficiently than its rivals.
Risk Factors
  • The article explicitly states that NextEra Energy was not included in The Motley Fool Stock Advisor's list of the 10 best stocks for investors to buy now, suggesting it may be overlooked by this specific investment recommendation service.
Full Analysis
NextEra Energy (NYSE: NEE) is being highlighted as the preferred energy stock to purchase in June, with the article positioning it as the "ExxonMobil of the power industry" due to its upcoming merger with Dominion Energy (NYSE: D). The proposed $67 billion transaction will create the world's largest regulated electric utility and North America's premier energy infrastructure platform, serving 10 million customers across four states. The combined entity is projected to become the world's largest renewable energy producer, battery storage operator, top U.S. gas power producer, and second-largest nuclear energy producer. The merger aims to enhance scale and growth profile in anticipation of surging electricity demand driven by AI data centers, electric vehicles, and advanced manufacturing. Forecasts indicate U.S. electricity demand will grow by 60% over the next 20 years, six times faster than the previous two decades. NextEra Energy expects its adjusted earnings per share to grow by more than 9% annually through 2032 following the deal, up from an estimated 8% growth rate previously projected. Dominion's operating area in Virginia, North Carolina, and South Carolina is particularly significant due to high data center power demand, with Virginia alone expected to need over 33 gigawatts of grid power by 2030. The article notes that NextEra Energy already has a strong growth plan focused on Florida and infrastructure investments across the U.S., but the Dominion merger accelerates this trajectory by providing greater scale advantages and access to high-growth data center markets. The author, Matt DiLallo, discloses positions in NextEra Energy, while The Motley Fool also holds positions and recommends both NextEra Energy and Dominion Energy.