To The Moon

$Dominion Resources(D)$ and $NextEra(NEE)$ shareholders have approved their proposed combination, clearing an important condition. The vote does not make completion automatic. Utility regulators still control the timetable and can demand concessions that change the economics for shareholders.

The companies announced their agreement on May 18. Dominion investors would receive 0.8138 NextEra shares for each Dominion share, plus their current dividend through closing and a share of a $360 million cash payment. The parties expected closing within 12 to 18 months, subject to federal approvals and reviews in Virginia, North Carolina and South Carolina. The original transaction announcement provides the exchange ratio and conditions.

Both shareholder approvals occurred on September 3 and were reported that day. Reuters noted that the transaction still requires state and federal approval, while Virginia’s governor has intervened to seek commitments on bills, employment and clean-energy investment. Maine’s governor has separately raised competition concerns about the combined company’s regional assets. Reuters’ September 3 report distinguishes completed voting from unfinished regulatory review.

The bullish case is scale. The combined company would be more than 80% regulated, serve about 10 million utility accounts and own 110 gigawatts of generation. Management projects procurement, financing and construction benefits, while Dominion customers would receive $2.25 billion of bill credits over two years. Dominion also gains access to NextEra’s development platform and potentially lower financing costs.

The bearish case is that those same bill credits and regulatory promises consume part of the synergy. Regulators may impose additional rate, employment or investment conditions. The fixed stock exchange ratio also means Dominion holders remain exposed to movements in NEE during a long closing period. Using NEE’s September 3 price of $84.06, the stock component was worth approximately $68.41 per Dominion share before future dividends and the per-share cash payment. That is only a modest premium to Dominion’s $66.79 close and is not a guaranteed realised value.

$Dominion Resources(D)$ rose 0.11% on September 3, trading between $66.38 and $66.92 on 5.24 million shares. Support lies at $65.50 to $66 and then $64.70. Resistance is $68.50 to $69.75, followed by $71 to $72. Dominion’s daily history suggests the vote reduced uncertainty without producing a decisive breakout.

If D holds $65.50 and closes above $67, an illustrative 30 to 45 DTE bull put spread could pair a short $62.50 put with a long $60 put, provided the live short-put delta magnitude is near 0.10 to 0.15 and the credit is meaningful. Maximum loss is $250 minus the credit. A close below $64.70 or a material adverse regulatory condition would invalidate the premise.

I lean moderately bullish on deal completion but neutral on near-term upside because the spread is small and regulatory terms remain unknown. Rejection, onerous concessions, sustained NEE weakness or a Dominion break below $64.70 would invalidate the constructive view. This is personal opinion for education, not financial advice or an instruction to enter a trade.