Dominion Energy, Inc. · NYSE:D
Dominion Energy — Shareholder Meeting (May 2019)
69 slides from Dominion Energy's shareholder meeting presentation, May 7, 2019
Slide 1: 2019 Annual Meeting of Shareholders
We are 2019 Annual Meeting of Shareholders May 7, 2019 Columbia, S.C. Thomas F. Farrell, II Chairman, President & CEO Dominion Energy, Inc.
Slide 2: Important Note to Investors
Important Note to Investors This presentation contains certain forward-looking statements, including forecasted operating earnings for full-year 2019, which are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, for
Slide 3: Today's Topics
Today’s Topics 1. Welcome to South Carolina 2. Five Core Values 3. Where We Are Today 4. Growth Plan 5. Commitment to Community 6. Summary
Slide 4: Welcome to South Carolina
Welcome to South Carolina • Completed SCANA combination Jan. 1 • Employees: 4,300 • 2018 charitable giving: About $2 million ➢ Expected to more than double in 2019 • Utility customer accounts: 1.11 million • Energy infrastructure ➢ 5,730 megawatts electric generation ➢ 22,000 miles electric distribu
Slide 5: Our Footprint in South Carolina
Our Footprint in South Carolina Electric service area Columbia Myrtle Beach Electric generating stations Charleston Columbia Gas service area Myrtle Beach Dominion Energy Carolina Gas Transmission Charleston 5
Slide 6: Residential Customer Bills
Residential Customer Bills Summer 2018 $150 $130 $110 $147.70 $151.47 $90 $139.76 $121.53 $70 $50 South Carolina South Atlantic East Coast Average National Average Electric & Gas Average 6 Source: EEI Typical Bills and Annual Rates Report, Summer 2018.
Slide 7: Residential Customer Bills
Residential Customer Bills May 2019 $150 $130 $110 $155.70 $90 $140.63 $124.35 $120.18 $70 $50 Dominion Energy South Atlantic East Coast Average National Average South Carolina Average 7 Source: EEI Typical Bills and Annual Rates Report, Winter 2019.
Slide 8: Industrial Rates Summer 2018
Industrial Rates 10 Summer 2018 Cents per Kilowatt-Hour 8 6 4 8.87 7.19 6.58 7.04 2 0 South Carolina South Atlantic East Coast Average National Average Electric & Gas Average 8 Source: EEI Typical Bills and Annual Rates Report, Summer 2018.
Slide 9: Industrial Rates May 2019
Industrial Rates 10 May 2019 Cents per Kilowatt-Hour 8 6 9.59 4 6.28 6.45 7.01 2 0 Dominion Energy South Atlantic East Coast Average National Average South Carolina Average 9 Source: EEI Typical Bills and Annual Rates Report, Winter 2019.
Slide 10: Today's Topics
Today’s Topics 1. Welcome to South Carolina 2. Five Core Values 3. Where We Are Today 4. Growth Plan 5. Commitment to Community 6. Summary
Slide 11: Our Core Values
Our Core Values Safety Our highest priority — in the workplace & in the community. Embrace Change Transformation and growth are the keys to long-term prosperity. A Ethics culture of receptivity to change Integrity, individual responsibility and ardor for innovation propels & accountability go hand-i
Slide 12: Safety
Safety
Slide 13: Safety: OSHA recordable incident rate
Safety 1.87 OSHA recordable incident rate 100 Employees Each Work Year Number of Recordables per 1.40 1.24 1.25 1.08 0.95 0.92 0.83 0.74 0.74 0.66 0.60 0.55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 13
Slide 14: Safety: OSHA recordable incident rate
Safety 1.87 OSHA recordable incident rate 100 Employees Each Work Year Number of Recordables per 1.40 1.24 1.25 Peer Average: 1.08 1.06 in 2018 0.95 0.92 0.83 0.74 0.74 0.66 0.60 0.55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14
Slide 15: Safety: OSHA recordable incident rate with SCANA
Safety OSHA recordable incident rate, 100 Employees Each Work Year Number of Recordables per With SCANA 0.65 0.65 0.46* YTD 2017 2018 2019 15 * Through April 30, 2019.
Slide 16: Ethics
Ethics
Slide 17: Generation Emissions Reductions
Ethics Generation Emissions Reductions 0% Percent Reduction -20% -40% -60% -80% -98% -92% -97% SO₂ NOx Hg -100% 17 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Slide 18: Generation Emissions Reductions
Ethics Generation Emissions Reductions 0% Percent Reduction -20% -40% -60% Net Generation -80% -98% -92% -97% SO₂ NOx Hg -100% 18 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Slide 19: Carbon Emissions Reductions
Ethics Carbon Emissions Reductions From Generating Fleet 60 57.3 55.5 57.6 57.2 CO2 Emissions (Millions of Metric Tons) 51.3 50.8 50 41.8 40 36.1 36.7 33.2 33.1 33.8 30.1 30 27.7 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 19
Slide 20: Carbon Emissions Reductions
Ethics Carbon Emissions Reductions From Generating Fleet About twice the reduction 60 57.3 55.5 57.6 57.2 from U.S. power sector CO2 Emissions (Millions of Metric Tons) 51.3 50.8 50 41.8 40 36.1 36.7 33.2 33.1 33.8 30.1 30 27.7 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 21: Carbon Emissions Reductions
Ethics Carbon Emissions Reductions From Generating Fleet About twice the reduction 60 57.3 55.5 57.6 57.2 from U.S. power sector CO2 Emissions (Millions of Metric Tons) 51.3 50.8 50 41.8 40 36.1 36.7 33.2 33.1 33.8 30.1 30 27.7 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 22: Carbon emissions reduction targets
Ethics • Carbon emissions reduction targets* ➢ Intensity: 60 percent – from 2000 to 2030 ➢ Total emissions: 55 percent – from 2005 to 2030 80 percent – from 2005 to 2050 60% 55% 80% * Does not include the Southeast Energy Group. Targets will be updated to include those businesses later this year. 22
Slide 23: Cumulative Methane Saved
Ethics Cumulative Methane Saved Natural Gas Businesses Projected Projected 2010 2011 2012 2013 2014 2015 2016 2017 2022 2030 - Methane, Billion Cubic Feet (5) (10) (15) 50% (20) 3.3 Million 2010-30 (25) CARS (30) (35) Legacy Voluntary Programs New and Expanded Voluntary Programs Voluntary efforts th
Slide 24: Transparency
Ethics Transparency • Climate CDP ➢ How company identifies, manages climate change risks ➢ Top 20 percent among U.S. utility peers • Water CDP ➢ Current, future water-related risks, opportunities ➢ Top 15 percent among U.S. utility peers • EEI, AGA sustainability reporting templates • Climate report
Slide 25: Diversity & Inclusion
Ethics Diversity & Inclusion • Recruiting ➢ Focus on recruitment of diverse interns, veterans, disabled ➢ Award $5,000 scholarships to up to 50 diverse students each year ➢ Unconscious bias training prerequisite for staffing, hiring managers ➢ More focused recruiting this year • Retention ➢ Sponsor,
Slide 26: Excellence
Excellence
Slide 27: Excellence
Excellence • Brought online, on time, on budget: ➢ Cove Point liquefaction facility ➢ Greensville County Power Station ➢ 1,350 megawatts of solar brought online since 2016 ➢ $900 million in electric transmission assets ➢ Dominion Energy Carolina Gas Charleston project • Emergency Recovery Award • Ed
Slide 28: Embrace Change
Embrace Change
Slide 29: Embrace Change
Embrace Change Innovation team 3rd party technical Senior management (SVP + team) advisers Innovation, Technology, and Sustainability Council Board of Directors (Chaired by CEO) TEAMS Behind the Offshore Electric Marine Solar RNG meter wind vehicles LNG 29 Please refer to the “Important Note to Inve
Slide 30: Embrace Change: Teams & Projects
Embrace Change TEAMS & PROJECTS Behind the Offshore Electric Marine Solar RNG meter wind vehicles LNG Project G Project H Project I Project J Project K Project L Project M Project N Project O Project P Project Q Project R 30 Please refer to the “Important Note to Investors” on slide 2 of this presen
Slide 31: Embrace Change
Embrace Change • Gas Infrastructure ➢ Renewable natural gas – waste methane from hog & dairy farms, food waste, landfills, wastewater treatment ➢ Smithfield Foods partnership – Align RNG 3rd Party ISP ➢ Lowers GHG footprint DEV fiber optic DEV • Power Delivery network Substation ➢ Broadband for unde
Slide 32: Embrace Change – Transportation
Embrace Change – Transportation • Help customers reduce greenhouse gas emissions at home, work & on road ➢ Clean EV web application • Leadership on electric, compressed natural gas vehicles ➢ Long-term plan for all fleet vehicles to be EVs or NGVs ➢ Charging & CNG stations • Marine LNG ➢ Ships burn
Slide 33: Actions: Environmental, Social & Governance Issues
Only company to host Actions ESG Investor Session Environmental, Social & Governance Issues Board of ▪ Sustainability and Corporate Responsibility Committee – five Directors independent directors – oversees company’s approach to ESG matters ▪ Diverse board ▪ ESG matters addressed at every regularly
Slide 34: One Dominion Energy
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Slide 35: One Dominion Energy
One Dominion Energy Community, Environmental, Major Projects Regulated Mergers customer, social & employee governance achievements Cove Point SCANA Grid Transformation Carbon & methane Liquefaction & Security Act reductions Power generation (Greensville, Questar SCE&G bill relief Board refreshment B
Slide 36: One Dominion Energy
One Dominion Energy • Teamwork builds stronger company ➢ Most Admired Gas & Electric Utilities (Fortune) ➢ America’s Best Employers (Forbes) ➢ Best Employers for Diversity (Forbes) ➢ Best Employers for Women (Forbes) ➢ Best Companies for Women (Women’s Choice Award) ➢ Management 250 (The Wall Street
Slide 37: Today's Topics
Today’s Topics 1. Welcome to South Carolina 2. Five Core Values 3. Where We Are Today 4. Growth Plan 5. Commitment to Community 6. Summary
Slide 38: Our Footprint – 2007
Our Footprint – 2007 Electric Service Territory Gas Service Territory Gas Pipelines Storage Field Regulated Power Unregulated Power Oil & Gas Production LNG Import Terminal 38
Slide 39: More Than Decade of Repositioning
More Than Decade of Repositioning (+) (-) $40B $20B $25B Regulated Regulated Unregulated capex M&A asset sales Regulated generation Electric transmission SCANA Customer growth Questar E&P Resiliency enhancements Carolina Gas Transmission Merchant generation Cove Point liquefaction Iroquois Pipeline
Slide 40: Where We Are Today
Where We Are Today 12.5% 10.0% +1.7M EPS DPS utility customers growth growth (SCANA) GTSA ~$2.5B Grid Transformation & nonregulated asset Security Act sales ~$8B parent-level debt Ratings affirmed reduction S&P / Moody’s / Fitch 40
Slide 41: Our Footprint Today
Dominion Energy’ W Our Footprint Today
Slide 42: Our Footprint Today
Our Footprint Today Legend Electric utility service territory Gas utility service territory Utility electric generation Contracted generation Storage Natural gas pipeline Atlantic Coast Pipeline Cove Point 42 Please refer to the “Important Note to Investors” on slide 2 of this presentation.
Slide 43: Our Footprint Today
Our Footprint Today $96B 21,300 7.5M 3.4M 3.3M 18 Legend assets customers customers states of employees Electric utility servicecustomers territory Gas utility service territoryutility) (total) (elec. (gas utility) operation Utility electric generation $61B Contracted generation Storage market cap N
Slide 44: Premium Locations
Premium Locations North South Virginia Ohio Utah Carolina Carolina CNBC Top states #4 #15 #3 #9 for business (2018) Forbes Best states for #4 #20 #2 #1 #15 business (2018) Unemployment U.S. BLS rate (Jan. 2019) #6 #12 #14 U.S. Census Population growth (2013-18) #22 #1 #12 #10 44
Slide 45: Total Return
Total Return 300% Dominion Energy 243.0% 250% Philadelphia Utility Sector Index S&P 500 Index 200% 201.3% 150% 153.6% 100% 50% 0% 2008 YE YE YE YE YE YE YE YE YE YE 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 45 Source: Bloomberg.
Slide 46: Operating Earnings
Operating Earnings $5.0 $4.5 $4.05-$4.40 Dollars Per Share $4.0 $4.05 $3.80 $3.5 $3.60 $3.43 $3.44 $3.0 $3.25 $3.03 $3.09 $2.5 $2.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 * Based on non-GAAP Financial Measures. See GAAP Reconciliation on Dominion Energy’s website at dominionenergy.com/investor
Slide 47: Earnings Growth (2017-2023)
Earnings Growth (2017-2023) $6.0 $5.5 Original Guidance $5.0 Dollars Per Share $4.5 $4.0 $3.65* $3.5 $3.0 $2.5 6%—8% CAGR $2.0 2017 2018A 2019E 2020E 2021E 2022E 2023E midpoint * Based on non-GAAP Financial Measures. See GAAP Reconciliation on Dominion Energy’s website at 47 dominionenergy.com/inves
Slide 48: Earnings Growth (2017-2023)
Earnings Growth (2017-2023) $6.0 $5.5 Strong 2018 Results $5.0 Dollars Per Share $4.5 $4.05* $4.0 $3.65* $3.5 $3.0 $2.5 6%—8% CAGR $2.0 2017 2018A 2019E 2020E 2021E 2022E 2023E midpoint * Based on non-GAAP Financial Measures. See GAAP Reconciliation on Dominion Energy’s website at 48 dominionenergy.
Slide 49: Earnings Growth (2017-2023)
Earnings Growth (2017-2023) $6.0 $5.5 2019 & 2020 Guidance Issued $5.0 Dollars Per Share $4.5 $4.05-4.40 $4.05* $4.0 $3.65* $3.5 $3.0 $2.5 6.7% CAGR 6%—8% CAGR (within original 6%—8% range) $2.0 2017 2018A 2019E 2020E 2021E 2022E 2023E midpoint * Based on non-GAAP Financial Measures. See GAAP Reconc
Slide 50: Earnings Growth (2017-2023)
Earnings Growth (2017-2023) $6.0 $5.5 2019 & 2020 Guidance Issued $5.0 Dollars Per Share $4.5 $4.05-4.40 $4.05* $4.0 $3.65* $3.5 ~5% per year $3.0 $2.5 6.7% CAGR 6%—8% CAGR (within original 6%—8% range) $2.0 2017 2018A 2019E 2020E 2021E 2022E 2023E midpoint * Based on non-GAAP Financial Measures. Se
Slide 51: Earnings Growth (2017-2023)
Earnings Growth (2017-2023) $6.0 $5.5 5%+ post-2020 $5.0 Dollars Per Share $4.5 $4.05-4.40 $4.05* $4.0 $3.65* $3.5 ~5% per year 5%+ $3.0 $2.5 6.7% CAGR 6%—8% CAGR (within original 6%—8% range) $2.0 2017 2018A 2019E 2020E 2021E 2022E 2023E midpoint * Based on non-GAAP Financial Measures. See GAAP Rec
Slide 52: Dividends
Dividends $4.0 $3.5 $3.67* Dollars Per Share $3.34 $3.0 $3.035 $2.80 $2.5 $2.59 $2.40 $2.0 $2.25 $2.11 $1.97 $1.5 2011 2012 2013 2014 2015 2016 2017 2018 2019 52 *Subject to quarterly determination and declaration by the Board of Directors. Please refer to the “Important Note to Investors” on slide
Slide 53: Dividend Policy
Dividend Policy Payout ratio 70% 87% $4.0 $3.5 $3.67* Dollars Per Share $3.34 $3.0 $3.035 $2.80 $2.5 $2.0 $1.5 2016A 2017A 2018A 2019E 2020 + Beyond 53 *Subject to quarterly determination and declaration by the Board of Directors. Please refer to the “Important Note to Investors” on slide 2 of this
Slide 54: Dividend Policy
Dividend Policy Payout ratio Low 70s% 70% 87% over time $4.0 $3.5 $3.67* Dollars Per Share $3.34 $3.0 $3.035 $2.80 $2.5 $2.0 $1.5 2016A 2017A 2018A 2019E 2020 + Beyond 54 *Subject to quarterly determination and declaration by the Board of Directors. Please refer to the “Important Note to Investors”
Slide 55: Today's Topics
Today’s Topics 1. Welcome to South Carolina 2. Five Core Values 3. Where We Are Today 4. Growth Plan 5. Commitment to Community 6. Summary
Slide 56: Five-Year Growth Plan
Five-Year Growth Plan Dominion Energy SC 8% ~$26B $6 ~$26B $5 2019-23 $5 Gas growth Transmission capital & Storage $5 14% $4 2019E 2020E 2021E 2022E 2023E Total 56 Please refer to the “Important Note to Investors” on slide 2 of this presentation.
Slide 57: Dominion Energy Virginia
Dominion Energy Virginia 2019—2023 growth capital ($B) Enviro/CT/other 7% Strategic undergrounding 5% Pumped storage 6% Transmission 26% Offshore wind 7% ~$17B 2019—2023 growth capital Nuclear relicensing 7% Solar 22% Grid Transformation 10% 57 Customer growth 10% Please refer to the “Important Note
Slide 58: Gas Transmission & Storage
Gas Transmission & Storage 2019—2023 growth capital ($B) Other Base end-use growth 13% 32% $3.6B TOTAL Resiliency 21% ACP 34% 58 Please refer to the “Important Note to Investors” on slide 2 of this presentation.
Slide 59: Gas Distribution
Gas Distribution 2019—2023 growth capital ($B) W.Va. 7% Rider investment 58% N.C. Ohio 22% 41% $3.5B $3.5B Customer growth and other Utah/Wyo. 42% 31% 59 Please refer to the “Important Note to Investors” on slide 2 of this presentation.
Slide 60: Dominion Energy South Carolina
Dominion Energy South Carolina 2019—2023 growth capital ($B) Electric transmission AMI 5% Grid 6% Electric Gas transformation customer 24% growth 9% 32% Electric $2.1B 76% $2.1B Gas customer growth Electric 24% environmental 24% 60 Please refer to the “Important Note to Investors” on slide 2 of this
Slide 61: Types of Growth Programs
Types of Growth Programs • Electric ➢ Nuclear relicensing ➢ Renewables ➢ Renewable-enabling gas combustion turbines ➢ Grid transformation ➢ Transmission ➢ Customer growth ➢ Environmental 61 Please refer to the “Important Note to Investors” on slide 2 of this presentation.
Slide 62: Types of Growth Programs
Types of Growth Programs • Gas ➢ Pipeline replacement ➢ Customer, rate base growth ➢ Resiliency ➢ Atlantic Coast Pipeline 62 Please refer to the “Important Note to Investors” on slide 2 of this presentation.
Slide 63: Today's Topics
Today’s Topics 1. Welcome to South Carolina 2. Five Core Values 3. Where We Are Today 4. Growth Plan 5. Commitment to Community 6. Summary
Slide 64: Charitable Giving
Charitable Giving About a third of a billion dollars $50 in charitable giving since 2007; $45 more than $130 million since 2014 $40.0* $40 $34.9 In Millions of Dollars $35 $28.5 $30 $26.6 $25 $23.4 $20 $18.5 $15 $10 $5 $0 2014 2015 2016 2017 2018 2019 64 *Please refer to the “Important Note to Inves
Slide 65: Community Volunteerism
Community Volunteerism 1,400,000 1,400,000 1,200,000 Number of Hours 1,000,000 800,000 600,000 400,000 200,000 125,000 126,000 0 2017 2018 2007-2018 65
Slide 66: Invested in Our Communities
Invested in Our Communities • Nearly $35 million in giving in 2018 ➢ $17 million in Foundation giving ➢ $6 million in direct giving ➢ $12 million to EnergyShare ➢ $320,000 in South Carolina; SCANA contributed $1.6 million in state ✓ Expect at least $4.4 million* in charitable giving in SCANA states
Slide 67: Today's Topics
Today’s Topics 1. Welcome to South Carolina 2. Five Core Values 3. Where We Are Today 4. Growth Plan 5. Commitment to Community 6. Summary
Slide 68: Summary
Summary • Premium, low-risk assets in premium locations • Values-based organization • Innovative & sustainable • Trusted community partner 68
Slide 69: 2019 Annual Meeting of Shareholders
We are 2019 Annual Meeting of Shareholders May 7, 2019 Columbia, S.C. DominionEnergy.com