Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q3 2019 Earnings Presentation
20 slides from Dominion Energy's earnings presentation, Nov 1, 2019
Slide 1: Q3 2019 earnings call
Q3 2019 earnings call November 1, 2019
Slide 2: Important note to investors
Important note to investors This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion Energy. The statements relate to, among other things, expectations, estimates and projections concerning the busines
Slide 3: Investment themes
Dominion Energy Investment themes Delivering exceptional value to our customers, communities, employees, and shareholders 95% $26B 15th Regulated + 2019—2023 Consecutive quarter² “like” operating growth capital at or above guidance income plan midpoint Utility-centric gas transmission & storage Prem
Slide 4: Operating earnings per share
Operating earnings per share Actual versus guidance ($ per share) Third quarter 2019 $1.18 $1.20 $1.13 $1.00 Favorable weather impact on utility earnings: +$0.05 Actual¹ Weather-normalized¹ Guidance¹ ¹ See pages 22, 28 and 30 of the third quarter 2019 Earnings Release Kit for supporting information
Slide 5: Select updates
Select updates Summary ▪ Effective date: October 1, 2019 Millstone ▪ Terms: 9 million MWh (55% of annual output) for 10 years; fixed price of $49.99 contract ▪ Positive outcome for Connecticut and region ▪ North Carolina (electric) — partial settlement, 9.75% ROE Regulatory ▪ Utah (gas distribution)
Slide 6: Select updates: updated reporting segments
Select updates Transitioning to updated reporting segments later this year Dominion Energy Dominion Energy Dominion Energy Dominion Energy Dominion Energy Gas Transmission Contracted Virginia Gas Distribution South Carolina & Storage Generation NY CT UT CT OH VA PA States of WY OH MD ID WV SC CA IN
Slide 7: Select updates: Cove Point equity recap
Select updates Summary ▪ $2.1B equity recapitalization¹ ▪ 25% passive investment by an affiliate of Brookfield Cove Point ▪ Rationale: Redeployment of capital from low-growth to robust regulated growth equity ▪ Export project construction cost: ~$4.1B recap ▪ Transaction implied enterprise value: ~$
Slide 8: Operating earnings per share
Operating earnings per share Prior year actual versus guidance ($ per share) Fourth quarter Full-year 2019 $1.25 $1.25 $4.30 $1.10 $4.15 $1.10 $3.05 $0.89 Millstone refueling $0.88 Regulated investment 4Q18 Southeast Energy Grp. ▪ 2019 operating EPS: Millstone PPA $4.15 to $4.30 per share Gu
Slide 9: Business updates
Business updates One of country’s most sustainable + innovative energy brands 2018 Sustainability and Electric school buses Renewable Natural Gas Corporate initiative (RNG) Responsibility Report Renewable Natural ▪ Most comprehensive report to ▪ Replace Electric 100%School Buses of ~13,000 ▪ Increas
Slide 10: Business updates: Virginia
Business updates Virginia Summary ▪ Key approvals received for 12MW pilot project; in-service late 2020 ▪ Announced largest U.S. offshore wind development totaling 2.6GW; Offshore embraces Governor Northam’s executive order 43 challenge to accelerate deployment wind ▪ Three phases of 880MW each; Tar
Slide 11: Business updates: GTSA-related investment summary
Business updates Virginia GTSA-related investment summary Virginia Strategic Grid Environmental Utility solar off-shore wind undergrounding transformation upgrades Approved: $0.4B Approved: $0.1B Approved: $0.5B Status Approved: $0.3B Approved: $0.3B Pending: $0.1B Pending: $0.5B Pending: $0.2B Anti
Slide 12: Business updates: Gas distribution operations South Carolina
Business updates Gas distribution operations South Carolina ▪ Strong customer growth ▪ Successful integration efforts with focus on operational excellence ▪ Executing on $2 billion, 5-year rider investment programs incl. pipeline replacement ▪ Restored service disruptions from Hurricane Dorian (~40%
Slide 13: Business updates: Atlantic Coast Pipeline
Business updates Atlantic Coast Pipeline Appalachian Trail crossing Biological Opinion Milestone Est. timing Milestone Est. timing SCOTUS grants cert ✓ Court order (Oct 4) (July 26) No later than Winter of Final SCOTUS decision Reissuance June 2020 2019/20 Recommence full Recommence partial Soon t
Slide 14: Leadership as of December 1, 2019
Business updates Leadership as of December 1, 2019 Thomas F. Farrell, II Chairman, President and Chief Executive Officer Robert M. Blue James R. Chapman Diane Leopold Carter M. Reid Co-COO; Executive Vice Co-COO; Chief of Staff for Responsible for President, Chief Responsible for Dominion Energy Dom
Slide 15: Summary
Summary ✓ On-track to achieve full-year safety results that are consistent with the record-setting performance of recent years ✓ Taking industry-leading steps to demonstrate leadership on ESG matters ✓ Achieved weather-normalized operating earnings that met or exceeded midpoint of guidance for 15th
Slide 16: Appendix
Appendix Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 16
Slide 17: Track-record of successful execution
Appendix Track-record of successful execution Weather normalized EPS vs. guidance Upper end guidance Guidance midpoint Lower end guidance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 15 straight
Slide 18: Operating EBIT: Actual versus guidance
Appendix Operating EBIT: Actual versus guidance ($M) Third quarter 2019 Operating Guidance range segment (midpoint) Actual¹ / Select driver(s) $285M—$320M Power Delivery $305M ($303M) $625M—$680M Weather Power Generation $692M ($653M) $365M—$405M Gas Infrastructure $396M ($385M) Weather $205M—$245M
Slide 19: Atlantic Coast Pipeline
Appendix Atlantic Coast Pipeline Reflects judicial solution to Appalachian Trail crossing Assumed Permit/authorization Agency Current status resolution (timing) U.S. Fish & Wildlife Service Vacated Reissuance Biological Opinion (USFWS) (July 2019) (Winter of 2019/20) U.S. Army Corps of Engineers Vol
Slide 20: Highlighted ESG statistics
Appendix Highlighted ESG statistics 2018 reporting year, unless noted¹ ▪ Safety: 0.55 OSHA recordable incident rate ▪ Carbon emissions intensity: 0.275 metric tons/MWh ▪ Fresh water withdrawals (consumptive): 0.0000001 billion liters/MWh ▪ Methane emissions: 63,620 metric tons² ▪ Supplier diversity: