Jim Cramer Advises Selling Dominion Before NextEra Merger
Jim Cramer told a caller to sell Dominion Energy shares ahead of their conversion to NextEra stock, advising 'take the money and run.' The $67 billion
Jim Cramer has advised investors to sell their Dominion Energy shares rather than hold them through a pending conversion into NextEra Energy stock. The host of CNBC's Mad Money made the comments during the September 16 episode in response to a caller's question.
"Take the money and run," Cramer said. "Honestly, I mean, I just think you take the money, you've won. Don't fool around." His blunt recommendation centers on the proposed $67 billion all-stock merger between the two utility giants.
Historic Mega Merger Details
NextEra Energy and Dominion Energy have agreed to a deal that would form the world's largest regulated electric utility. The transaction values the combined entity at approximately $67 billion. Under the terms, Dominion shareholders are set to receive a fixed exchange ratio of 0.8138 shares of NextEra Energy for each Dominion share they own.
A separate aggregate cash payment of $360 million will also be distributed across outstanding Dominion shares at closing. The companies have proposed customer bill credits as part of the transaction. The combined company would serve about 10 million customer accounts across high-growth regions including Florida, Virginia, North Carolina, and South Carolina.
Regulatory and Financial Hurdles
Despite the strategic rationale, the merger faces significant operational and regulatory challenges. Regulatory scrutiny is particularly intense in Virginia, where concerns about electricity affordability and potential cost shifts onto retail ratepayers are prominent. These issues are amplified by surging electricity demand from power-hungry artificial intelligence data centers.
Heavy balance sheet leverage at both companies presents another risk factor. Dominion Energy carries around $46.7 billion in long-term debt. NextEra Energy is managing an even larger burden, with $104.2 billion in total long-term debt on its second-quarter 2026 balance sheet. State regulatory hearings, grid interconnection delays, and elevated borrowing costs create headwinds that could delay the transaction and impact future earnings.
| Company | Long-Term Debt |
|---|---|
| Dominion Energy (D) | $46.7 billion |
| NextEra Energy (NEE) | $104.2 billion |
Institutional Investor Positioning
According to a database from Insider Monkey tracking over 1,000 hedge funds, institutional interest in both stocks grew in the second quarter. Eighty hedge funds held a stake in NextEra Energy. Dominion Energy also saw a quarterly increase in hedge fund backing, with 47 funds holding a stake compared to 37 in the previous period. Despite this growth for Dominion, NextEra maintains a commanding lead in overall hedge fund popularity.
The source report from Yahoo Finance notes that the transaction continues to proceed through approval channels amid these various financial and regulatory considerations.
