Dominion Energy (D) shares surged nearly 12% in U.S. pre-market trading Monday, reaching $69.00, following a report that NextEra Energy (NEE) is in advanced discussions to acquire the utility in a deal valued at roughly $66 billion. The stock closed Friday at $61.73, leaving a gap of about 9% below the rumored offer price of $76 per share.
According to sources cited by Reuters, NextEra is proposing a primarily stock-based transaction, offering approximately 0.8 of its own shares plus a small cash component for each Dominion share. Under the proposed terms, NextEra shareholders would own about 75% of the combined entity. The final value of the bid would fluctuate with NextEra's stock price, introducing deal risk and regulatory uncertainty into the equation.
The timing of the report is significant. The New York Stock Exchange is operating on a regular schedule Monday, with no holidays, ensuring full market participation and liquidity as traders digest the news. This contrasts with a holiday session that might dampen trading activity.
The potential merger comes against a backdrop of record U.S. electricity demand, driven largely by the explosive growth of data centers. Dominion has positioned itself as a key player in this space, reporting on its May 1 earnings call that it has over 50 gigawatts of data-center capacity in its pipeline, with approximately 10.4 GW already under electric service agreements. CEO Robert Blue noted "incredibly strong demand" for new data centers in Virginia, with "no detectable change" in customer interest.
Dominion's fundamentals have strengthened over the past year. The company reported first-quarter GAAP net income of $0.69 per share and operating earnings of $0.95 per share. Management maintained its full-year 2026 operating earnings guidance range of $3.45 to $3.69 per share. Barclays analyst Nicholas Campanella recently raised his price target on Dominion to $70 from $66, maintaining an Overweight rating and describing the first-quarter results as "solid."
A merger between NextEra and Dominion would create one of the largest U.S. utilities by market capitalization, with a combined value approaching $400 billion including debt. NextEra's market cap stood at approximately $194.69 billion, compared to Dominion's $54.29 billion, based on LSEG data. The combined entity would have a significant footprint in Virginia and the Carolinas, key regions for data center development.
However, the deal faces substantial hurdles. Regulatory approvals from antitrust and energy authorities would be required, and the stock-based nature of the offer exposes Dominion shareholders to NextEra's share price volatility. Dominion has also flagged risks associated with data-center growth, including concentrated demand, permitting delays, and capital market conditions.
For Dominion investors, Monday's trading session will provide a clearer signal on whether the market views this as a credible path to $76 per share or another utility merger story that must navigate legal, regulatory, and shareholder challenges. The premium is already reflected in the pre-market price, but the deal remains far from certain.
