Renewable player overtakes ExxonMobil in market value

After decades of embracing fossil fuels, Wall Street appears to be shifting its allegiance to renewable energy, a sharp turn apparent in the contrasting fortunes of NextEra Energy and ExxonMobil.

Florida-based NextEra, a big player in wind and solar energy, has overtaken the global oil giant as the most valuable US energy company by market value.

NextEra’s market capitalization has surged to $145 billion compared with ExxonMobil’s $142 billion, another emblem of the Texas giant’s diminished status after it was bumped this year from the prestigious Dow Jones index after more than 90 years.

The ascendance of NextEra and other renewable-oriented companies is not merely a passing trend, said Peter McNally, an energy expert at research firm Third Bridge.

“I’ve seen fads in alternative energy come and go over the last decade, and I’m sure that people would debate the multiple investors are paying for the earnings generated,” he said in an interview.

“They’re in the right place at the right time.”