Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Spanish gas grid operator Enagás is pushing deeper into Europe’s energy infrastructure landscape, striking a €573 million deal to acquire a 31.5% stake in French transmission system operator Teréga while simultaneously reshaping its renewable hydrogen portfolio through a partial divestment.

The company has agreed to purchase the minority stake in Teréga from Singapore’s sovereign wealth fund GIC, gaining exposure to a strategic gas network in southwestern France that spans roughly 5,100 km of pipelines and accounts for around 16% of France’s transmission grid and 27% of its gas storage capacity.

The deal, expected to close in 2026 pending regulatory approvals, strengthens Enagás’s cross-border integration, linking Spanish and French gas systems through existing interconnections and reinforcing regional supply security.

In parallel, Enagás has completed the sale of a 40% stake in Enagás Renovable to clean hydrogen investment platform Hy24 for €48 million, while retaining a reduced 20% interest.

The twin moves reflect a broader strategic recalibration. Enagás is doubling down on regulated infrastructure—traditionally a stable earnings base—while selectively recycling capital from early-stage renewable ventures.

The Teréga acquisition aligns with the company’s long-term strategy to expand its footprint among European transmission system operators (TSOs), particularly as cross-border gas flows and infrastructure coordination gain importance amid ongoing energy security concerns following recent geopolitical disruptions.

At the same time, the partial exit from Enagás Renovable suggests a shift in how the company intends to participate in the hydrogen value chain. Rather than acting as a broad developer, Enagás appears to be concentrating on backbone infrastructure—such as pipelines and transport corridors—where it holds a structural advantage.

This is underscored by its leadership role in the Spanish Hydrogen Backbone Network and participation in the H2Med corridor linking Iberia with broader European markets.

The strategic moves come alongside steady operational performance. Enagás reported first-quarter net profit of €56.9 million and remains on track to meet its full-year target of €235 million.

Gas demand dynamics also remain supportive, with total transported volumes rising 4.2% year-on-year, driven in part by a 24% surge in gas-fired power generation demand and a 15.6% increase in exports to Europe.

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These trends highlight the continued relevance of gas infrastructure even as Europe accelerates its decarbonization agenda—a dual reality that companies like Enagás are increasingly positioning around.

The Teréga deal signals continued consolidation and cooperation among European TSOs, a trend likely to intensify as the continent builds out integrated energy systems that can accommodate both natural gas and low-carbon gases like hydrogen.

Meanwhile, the divestment of Enagás Renovable reflects a maturing hydrogen sector, where early-stage development is giving way to more capital-intensive infrastructure buildout and stricter regulatory separation between network operators and competitive energy activities.

For investors, the strategy suggests a focus on stable, regulated returns complemented by targeted exposure to the emerging hydrogen economy—rather than broad-based renewable expansion.

By Charles Kennedy for Oilprice.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

The new remuneration incentives are a potential boon for Enagas as it pivots from natural gas toward hydrogen.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.

With no single headline event on the calendar, Enagás (BME:ENG) is drawing attention after a recent share move. This is encouraging investors to reconsider how its current valuation lines up with its fundamentals.

See our latest analysis for Enagás.

The recent 1.30% 1 day share price return, with the stock now at €14.81, sits within a steady trend that includes a 10.03% 90 day share price return and a 21.44% 1 year total shareholder return. This hints that sentiment has been gradually improving as investors reassess risk and income prospects alongside valuation.

If this move in Enagás has you thinking about where capital could work next, it might be worth checking out our screener of 23 power grid technology and infrastructure stocks as another way to spot infrastructure themed opportunities.

With Enagás trading at €14.81, currently close to analyst targets and showing an intrinsic discount signal, the key question is whether the current price still underestimates its gas and hydrogen infrastructure potential or instead already reflects expectations for future growth.

Preferred P/E of 11.4x: Is it justified?

On a P/E of 11.4x at a last close of €14.81, Enagás screens as undervalued relative to both peers and the wider gas utilities industry based on current earnings.

The P/E ratio compares the share price with earnings per share. For a business like Enagás that is profitable and established in regulated gas and hydrogen infrastructure, it is a simple way to see how much investors are paying for each unit of current earnings.

Here the market is assigning Enagás a P/E of 11.4x, while the global gas utilities industry sits around 14.8x and the peer and fair P/E benchmarks both point closer to 13.2x. That gap suggests investors are paying less for Enagás earnings than they are for comparable companies, and the fair P/E level indicated by the model is higher than where the market is currently pricing the stock.

Explore the SWS fair ratio for Enagás

Result: Price-to-Earnings of 11.4x (UNDERVALUED)

However, you also have to weigh risks, including an annual net income decline of 4.2% and potential execution challenges across its hydrogen and new energy initiatives.

Find out about the key risks to this Enagás narrative.

Another view using our DCF model

The P/E points to Enagás as good value, but our DCF model goes much further, with an estimated future cash flow value of €38.86 per share versus today’s €14.81. That gap signals a very different picture. Which lens do you consider more useful for your own process?

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Look into how the SWS DCF model arrives at its fair value.ENG Discounted Cash Flow as at Mar 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Enagás for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 228 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If all of this leaves you torn between the positives and the risks, take a moment now to weigh both sides for yourself with 3 key rewards and 3 important warning signs.

Ready to hunt for your next idea?

If Enagás has sharpened your focus, do not stop here, the same tools can help you quickly spot other opportunities that fit your style and risk comfort.

Target dependable income by scanning for solid payers in our 469 dividend fortresses, so you do not miss companies built around steady cash returns. Zero in on quality at a price with the 228 high quality undervalued stocks, and quickly see which businesses our filters flag as potentially mispriced. Focus on resilience first using the 290 resilient stocks with low risk scores, where you can sort for companies our model scores with lower overall risk.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ENG.MC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Core After-Tax Profit: EUR266.3 million. EBITDA: EUR675.7 million. Net Profit (including one-offs): EUR339.1 million. Core Operating Expenses: Decreased by 0.6% versus 2024 levels. Financial Expenses: Down 20.5%. Net Debt: EUR2.47 billion. Financial Cost of Gross Debt: 2.1%. FFO to Net Debt Ratio: 25.7%. Liquidity Position: Over EUR2.51 billion. Subsidiaries Contribution to EBITDA: EUR155.3 million. Asset Rotation Impact: Net capital gains from various sales and acquisitions, including EUR5.1 million from Soto La Marina and EUR9.6 million from Sercomgas. 2026 Targets: Core after-tax profit of approximately EUR235 million, net debt around EUR2.4 billion, EBITDA of EUR620 million, and a EUR1 per share dividend.

Warning! GuruFocus has detected 7 Warning Signs with ENGGF. Is ENGGF fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Enagas SA (ENGGF) exceeded its 2025 budget targets, demonstrating strong execution of its strategic plan. The Spanish gas system showed a 100% supply guarantee and availability, contributing significantly to energy security. The company achieved a 7.4% increase in total gas demand transported, with a notable 33.4% rise in gas demand for electricity generation. Enagas SA (ENGGF) maintained a robust financial position with a net debt of EUR2.47 billion, well within its annual budget forecast. The company has made significant progress in green hydrogen infrastructure, securing substantial funding and political support for future projects.

Negative Points

There is uncertainty regarding the regulatory framework for the 2027-2032 period, which could impact future remuneration. The arbitration cases in Peru remain unresolved, with potential delays in cash inflows expected until 2030. The company faces potential delays in hydrogen infrastructure projects due to administrative tasks like permits and environmental assessments. Enagas SA (ENGGF) is not counting on cash inflows from the GSP award in 2026, reflecting a conservative financial stance. The regulatory framework for hydrogen investments is still under development, creating uncertainty about future returns.

Q & A Highlights

Q: Can you provide insights into the regulatory review and remuneration risks for the 2027-2032 period? Also, what caused the EUR70 million shift in provisions? Lastly, are there expected delays in the hydrogen backbone network FID, and how might this affect dividend policy? A: The regulatory review aims to maintain stability, with adjustments expected but no major changes. Four elements are crucial: operating expenses, maintaining OpEx margins, incentivizing asset life extension, and a mechanism for gas system availability. The EUR70 million shift relates to a provision for a potential tax break from Tallgrass Energy, with no negative impact expected. Delays in hydrogen infrastructure could save funds for future investments, maintaining a stable dividend policy.

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Q: Could you update us on the timeline for the regulatory draft and your approach to M&A given your balance sheet strength? A: The CNMC plans to release the draft circular proposals for public consultation in the coming weeks, likely by March or April, with final approval expected by October. Regarding M&A, Enagas prioritizes organic growth in renewable hydrogen, dividend sustainability, and credit ratings. Any investment opportunities must align with strategic criteria, focusing on Spain, Europe, and regulated assets.

Q: With a flat net financial debt target for 2026, is there no expected cash inflow from Peru in 2026? Also, what would drive significant net income growth in 2027? A: We are conservatively not counting on cash inflows from Peru in 2026, expecting them by 2030. Net income growth in 2027 is anticipated from improved EBITDA and BDI at the start of the next regulatory period, though specific guidance is not yet provided.

Q: What rate of return do you expect the CNMC to approve, and what are your expectations for the hydrogen regulatory framework? A: We anticipate a rate of return close to 6.5%, aligned with the electricity system's rate. The hydrogen regulatory framework will be shaped by the transposition of the European hydrogen and decarbonized gas package, with a draft law expected soon. This will establish the national hydrogen system, regulated market, infrastructure development mechanisms, and demand incentives.

Q: Can you break down the EUR225 million investment planned for 2026, and clarify the GSP timeline and hydrogen regulation details? A: The 2026 investment includes EUR97 million for natural gas infrastructure, EUR49 million for hydrogen infrastructure, and EUR55 million for new businesses. The GSP annulment appeal resolution is expected by year-end 2026. The hydrogen regulation draft law is anticipated soon, with the CNMC preparing for future regulatory responsibilities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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