Core Viewpoint - Dominion Energy, Inc. has faced significant challenges due to the suspension of offshore wind project leases, impacting its share price and project timelines [3][4]. Company Overview - Dominion Energy provides regulated electricity service to 3.6 million homes and businesses across Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina [2]. Recent Developments - The share price of Dominion Energy fell by 1.83% from December 17 to December 24, 2025, making it one of the energy stocks that lost the most during that week [1]. - On December 22, the Trump administration suspended leases for five large offshore wind projects, including Dominion's Coastal Virginia Offshore Wind project, citing national security concerns [3]. - The Coastal Virginia Offshore Wind project, expected to be completed next year, is the largest of its kind in the US, with a capacity of 2.6 GW, aimed at meeting the growing energy needs in Virginia [4]. - Dominion Energy has received a 90-day halt order on the Coastal Virginia Offshore Wind project, further delaying a project that has been in development for over ten years [4]. Analyst Insights - On December 16, Morgan Stanley analyst David Arco lowered the price target for Dominion Energy from $65 to $62 while maintaining an 'Equal Weight' rating on the shares [5].

Core Viewpoint - Dominion Energy, Inc. is facing price target reductions from analysts, reflecting a cautious outlook on the utility sector's growth potential, particularly influenced by data center demand [3][4]. Group 1: Analyst Ratings and Price Targets - Morgan Stanley analyst David Arco lowered the price target for Dominion Energy from $65 to $62 while maintaining an 'Equal Weight' rating, indicating a potential upside of 4.5% [3]. - JPMorgan also reduced its price target from $62 to $59 and kept an 'Underweight' rating, aligning with broader updates in the North American utilities sector [4]. Group 2: Company Position and Market Dynamics - Dominion Energy provides regulated electricity to 3.6 million customers and natural gas service to 500,000 customers in South Carolina [2]. - The company has established a significant presence in Virginia's 'Data Center Alley,' connecting 450 data centers, with over 25% of its sales attributed to these facilities [5]. - As of September 2025, Dominion Energy has approximately 47 GW of data-center supply in various contracting stages, an increase from around 40 GW as of December 2024 [5].

Core Insights - The utility sector has benefited significantly from the AI boom, with major companies securing substantial contracts with hyperscalers, leading to billions in investments in the coming years [1] - Recent concerns about an AI bubble have tempered bullish sentiment, causing investors to question the realization of these promised investments [2] - Despite outperforming the market for most of the year, the utilities sector has recently experienced a pullback, with the S&P Utilities index up 12.41% since the beginning of 2025, compared to a 15.44% gain in the overall S&P 500 [3] Company Highlights - **Dominion Energy, Inc. (NYSE:D)**: - Serves 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and provides natural gas service to 500,000 customers in South Carolina [8] - Morgan Stanley reduced its price target from $65 to $62, maintaining an 'Equal Weight' rating, indicating a potential upside of 4.5% [9] - JPMorgan also lowered its price target from $62 to $59, keeping an 'Underweight' rating [10] - Holds a strong position in Virginia's 'Data Center Alley', with 450 data centers connected and over 25% of sales from these facilities; has approximately 47 GW of data-center supply in contracting stages, up from 40 GW [11] - **Eversource Energy (NYSE:ES)**: - Operates New England's largest energy delivery system, serving customers in Connecticut, Massachusetts, and New Hampshire [12] - JPMorgan lowered its price target from $72 to $71, maintaining an 'Underweight' rating, indicating almost 4% upside potential [13] - BofA raised its price target from $72 to $75, maintaining a 'Buy' rating after discussions regarding the utility's regulatory roadmap [14] - Reaffirmed a 5-year capital plan of $24.2 billion through 2029, with additional investment opportunities of $1.5 billion to $2 billion; declared a quarterly dividend of $0.7525 per share, with an annual dividend yield of 4.43% [15]

Company Overview - Dominion Energy, Inc. (NYSE:D) provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina [2]. Price Target Adjustment - On November 20, Morgan Stanley lowered its price target on Dominion Energy from $66 to $65 while maintaining an 'Equal Weight' rating on its shares, citing the underperformance of the utilities sector compared to the overall market in October [3]. Acquisition Talks - Dominion Energy is in discussions to acquire the Northern Virginia Electric Cooperative, which would enable the company to serve the growing cluster of data centers in Northern Virginia. A decision on the deal has not yet been made [4]. Demand for Data Centers - In its Q3 earnings call, Dominion Energy reported a rising demand for data centers, currently contracting to provide 47 GW of capacity, which is a 17% increase from approximately 40 GW as of December 2024 [5].

Core Insights - Dominion Energy, Inc. (NYSE:D) has reported strong Q3 results, exceeding profit and revenue expectations due to increased power demand in Virginia and South Carolina [3] - The company is planning to invest $50 billion through 2029 to expand its power infrastructure in response to growing demand, particularly in the data center sector [3] - Dominion Energy has been recognized as one of the best high-yield energy stocks and utility stocks for dividends, with a quarterly dividend declared at $0.6675 per share and an annual yield of 4.55% [1][5] Financial Performance - In Q3, Dominion Energy beat quarterly profit and revenue estimates, driven by increased power demand [3] - The company's data center pipeline has grown by 17% since the end of the previous year, reinforcing its position as the largest data center-serving electric utility globally [3] Analyst Coverage - RBC Capital analyst Stephen D'Ambrisi resumed coverage of Dominion Energy with a 'Sector Perform' rating and a price target of $70, indicating a potential upside from its current trading value of less than $59 [4] - The analyst noted that Dominion is trading at an approximately 11% discount compared to its electric peers based on RBC's slightly above-consensus 2028 EPS estimate [4] Investment Considerations - Despite the positive outlook, there are concerns regarding the large project risks associated with the Coastal Virginia Offshore Wind project, which is currently under federal review [4] - The company has been included in lists of attractive investment options, particularly for dividend-seeking investors [1][5]