1、USA|Power&UtilitiesEquity ResearchAugust 21,2025 JulienDumoulin-Smith*|Equity Analyst+1(281)774-2066|PaulZimbardo*|Equity Analyst+1(212)778-8497|IvanaErgovic*|Equity Analyst+1(212)284-2175|BrianRusso,CFA*|Equity Analyst+1(212)778-8559|JamiesonWard,CFA*|Equity Analyst+1(281)774-2081|DushyantAilani,CF

2、A*|Equity Analyst1(212)778-8318|TannerJames,CFA*|Equity Analyst+1(212)788-8667|HannahVelasquez*|Equity Associate+1(347)982-6038|WhitneyMutalemwa*|Equity Associate+1(212)707-6413|SparkLi*|Equity Associate+1(713)308-4573(office)|QudratQureshi*|Equity Associate(646)530-5925|LukeFenker*|Equity Associate

3、+1(713)308-4523|A Merger of Equals Rises:What This Means forUtilities?The BKH/NWE.MoE is far less common in the sector in favor of othertransactions in which a strategic utility,infrastructure fund and/or privateequity firm acquires a utility at typically double-digit(%)premium.Most execswould agree

4、 that standalone growth platforms are more than enough withoutpartnering.Others seek mergers due to lack of B/S sheet strength to driveaccretive growth with affordability focus.What is the point of MoE deals in utilities?We see principle angles around increased scale,diversity,and ultimately liquidi

5、ty.While still well south of criteria for S&P500 addition,we see themerits in being a meaningfully larger entity.An MoE is far less common in the sector lately with theright social backdrop between executives enabling such an outcome.Difficult to align socially,we see the latest BKH-NWE tie-up as li

6、kely more one-off.The decisionby two relatively new CEOs as an unlikely outcome,with BKH(not covered)CEO Evans holdingthis role for just 6-yrs.Bird,NWE(not covered)only since 2023,will become CEO of the new co,succeeding Evans,who will retire.Evans will indeed trigger his change of control(CiC)thru