Wall Street Is Falling Out of Love With a Once-Coveted Fossil Fuel
With new restrictions on natural gas development, investors have shifted their attention to electricity.
The 550-megawatt Desert Sunlight Solar Farm in Desert Center, California is owned by NextEra Energy Inc.
Photographer: Marcus Yam/Los Angeles Times via Getty Images
For years investors were willing to pay more for shares of natural gas utilities compared to electric ones. That’s no longer the case.
In the past few days, electric utility valuations blew past those for gas, a sign that investor confidence in the future of fossil fuels has reached a tipping point. With climate advocates pushing to eliminate natural gas from homes and businesses and lawmakers from New York to California taking a stand against greenhouse gas emissions, pipeline developers are facing an uncertain future.