Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2022 Earnings Presentation
36 slides from Dominion Energy's earnings presentation, Aug 8, 2022
Slide 1: Q2 2022 earnings call
Q2 2022 earnings call August 8, 2022
Slide 2: Important note for investors
Important note for 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 busine
Slide 3: Compelling investment proposition
Compelling investment proposition Comprehensive total shareholder return Industry-leading 6.5% 3.2% ~10% ESG EPS growth rate dividend shareholder through 2026 yield return profile $37B Industry’s largest 5-year growth 6% Pure-play regulated capital plan annual DPS state-regulated decarbonization 85%
Slide 4: Safety – OSHA recordable incident rate
Employees Safety – OSHA recordable incident rate¹ ~65% safer than industry average 100 employees each work year 1.78 Number of recordables per 1.50 1.44 1.34 1.32 1.06 1.02 1.04 1.00 0.92 0.88 0.80 0.65 0.68 0.62 0.52 0.41 0.46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 5: Regulated offshore wind
Regulated offshore wind Providing significant economic and environmental benefits Test project installed turbine Economic benefits¹ ▪ 2,000 construction & permanent clean-energy jobs in VA (6MW) ▪ ~$300M economic output & pay/benefits per year ▪ ~$11M state and local tax revenue per year Customer fu
Slide 6: Regulated offshore wind
Regulated offshore wind Continues to meet project milestones Attractive leasehold location ✓ Nov. 2013 113,000-acre leasehold acquired via auction for $1.6M ▪ Minimal overlap with shipping ▪ No proximal OSW leaseholds ✓ Sep. 2019 Final approval issued by BOEM for test project ▪ Limited fishing indus
Slide 7: Dominion Energy Virginia
Dominion Energy Virginia Executing the plan for the benefit of customers ✓ Rider SNA¹ approved by SCC for costs to extend the operating licenses of 4 nuclear units Nuclear life at North Anna and Surry representing about ~$4B in capital investment extension ▪ 33% of VA’s generation and 90% of VA’s ca
Slide 8: Dominion Energy Virginia
Dominion Energy Virginia Average residential electric customer bill as % of median household income¹ DEV U.S.² DEV residential customer 2.5% bill as a percentage of customer wallet at 1.8% 2.5% is below the national 2.1% average of 2.1% DEV’s affordability has 25% 1.8% improved Improvement by 25% si
Slide 9: Dominion Energy Virginia
Dominion Energy Virginia Typical residential electric customer bill Historic growth rate Current rate (cents per kWh)¹ (2008—2022¹) (8%) 20.0 17.8 18.2 14.9 13.7 2.4% 1.7% DEV Inflation DEV US East Coast states Middle Atlantic RGGI states² states Bill increases below historical rates of inflation; c
Slide 10: Dominion Energy Virginia
Dominion Energy Virginia Zero-carbon & zero-fuel generation —, Fuel costs— to the benefit of customers Renewable as percentage of DEV total Fuel as percentage of DEV typical residential generation dispatch (MWh)¹ electric customer bill² 51% 25% ▲ Offshore wind ▲ Solar 8% 5% 2021A 2035E July 2022A
Slide 11: Dominion Energy Virginia
Dominion Energy Virginia Northern Virginia boasts the largest data center market in the world¹ Loudoun County² Data center development in Virginia¹ Data Center Alley ✓ Connectivity to world class fiber networks ✓ Attractive business climate ✓ Access to largest data center workforce (U.S.) Washington
Slide 12: Dominion Energy Virginia
Dominion Energy Virginia PJM DOM Zone summer peak load (GW)¹ 26 25 25.1 2022: 2,600 MW increase 24 vs 2021 load forecast 23.7 23 22 21 20.4 20 19 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 PJM forecast: 2019 2020 2021 2022 ¹https://www.pjm.com/-/media/library/reports-notices/lo
Slide 13: Select business updates
Select business updates ✓ Attractive customer growth ✓ Reduced the average annual customer outage minutes (SAIDI) by over 20% YTD 2022 relative to the same period in 2021 Dominion ✓ Approved 2021 IRP update: Accelerated coal retirements and renewable energy Energy South ▪ Coal generation retired by
Slide 14: Operating earnings per share
Operating earnings per share Q2 2022: Actual versus guidance ($ per share) 26 $0.77 $0.78 $0.80 consecutive quarters $0.70 of delivering Unfavorable weather impact on utility earnings: weather-normal ($0.01) quarterly results that meet or exceed quarterly guidance midpoint Actual¹ Weather normal² Gu
Slide 15: Guidance
Guidance Operating earnings and dividends per share Earnings Dividends $0.98—$1.13 ▲ Regulated investment Target growth Q3 2022 ▲ Sales 6.0% per year rate through (YoY drivers) ▼ Interest expense ▼ Tax timing 2026 (no change) ▼ Share dilution FY 2022 $3.95 —$4.25 FY 2022 $2.67 (no change) (no change
Slide 16: Regulated electric sales
Regulated electric sales 2022E operating EPS impact for 1% (full year) change in electric sales Dominion Energy Virginia: Dominion Energy South Carolina: Weather normal regulated electric sales (2022E) Weather normal regulated electric sales (2022E) 44% Data centers: ~20% of total 37% 35% volume 32%
Slide 17: Executing the plan: Regulated decarbonization
Executing the plan: Regulated ecarbonization ✓ Safety remains our top priority as our first core value ✓ 26th consecutive quarter of weather-normal earnings at or above guidance midpoint range ✓ Affirmed 2022 EPS guidance of $3.95 to $4.25 ✓ Executing across the largest regulated decarbonization inv
Slide 18: Appendix
Appendix 18 83 \\\y
Slide 19: Operating segments
Operating segments Summary State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT VA H ID W O States of operation Y WV SC H Southeastern UT NC & Mid- UT Atlantic U.S. NC 2022E operating ~57% ~18% ~14% ~10% earnings contribut
Slide 20: Investing in support of our clean-energy profile
Investing in support of our clean-energy profile Five-year growth capital ~$37B 59% $22B Zero-carbon generation & energy storage¹ ~87% Emissions reduction and 18% $7B Electric grid transformation² enabling investments 10% Gas distribution modernization / RNG $3B 13% $5B Customer growth & other 2022
Slide 21: Decarbonization initiatives extend beyond 5-year plan
Decarbonization initiatives extend beyond 5-year plan Benefits customers, communities, environment Gas distribution modernization / RNG Nuclear life Electric grid transformation Up to $8B ~$73B Up to $15B Emissions Energy extension reduction and storage Up to $4B¹ enabling Solar Up to $4B Offshore U
Slide 22: Regulated offshore wind: Experienced partners
Regulated offshore wind Experienced partners Wind turbine Offshore Transport & Monopiles Transition pieces generators substations install Note: illustration not to scale 22
Slide 23: First Jones Act compliant offshore wind installation vessel
First Jones Act compliant offshore wind installation vessel ▪ Operations based out of the Port of Virginia ✓ May 2020 Announced plans to develop the first Jones Act compliant offshore wind turbine installation vessel in the United States ▪ Transport and install foundations and turbines of offshore w
Slide 24: Industry leading ESG profile achieving net zero by 2050
Industry leading ESG profile Committed to safe, reliable, affordable and sustainable energy and achieving net zero by 2050 Environment Social Governance 70%+ reduction 42% reduction OSHA recordable rate³ Board refreshment in Scope 1 CO2e emissions¹ 1% annual increase 7 new directors since 2016 workf
Slide 25: Third-party ESG assessments
Third-party ESG assessments Dominion Energy’s independent 3rd party scoring reflects best-in-class ESG performance Dominion Energy Sector average “Leadership “Leadership “Trendsetter” band” band” “Leader” 94 ✓ . A- ✓ . A- AA Lower score = better 81 B B 27 25 BBB CDP—Climate CDP—Water MSCI Sust
Slide 26: Environment
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 42%↓ 37% 48% ~70%— ~99% 7% 80%↓ Net Zero 76% zero & low (conforms to 1.5o emitting Paris Accord 41% Goals4) 52%
Slide 27: Customers
Customers State-regulated utilities Segment summary as of 6/30/2022 State summary Three months ended DE Customers June 30 South Carolina 6/30/2022 (M) Gas Distribution ‘20-’22 CAGR 1.2M 3.1M 17% DE Virginia 1.1% 2.7 44% DE South Carolina 2.6% 1.2 Electric 2.1% 0.8 Gas 3.7% 0.4 7.0M state utility Gas
Slide 28: Weather: degree days
Weather Degree days Quarter ended 6/30 Six months ended 6/30 2022 2021 2022 2021 Actual 297 285 2,192 2,174 Heating Normal 291 291 2,264 2,261 Dominion Energy Virginia Actual 502 509 513 520 Cooling Electric Normal 517 489 522 494 Actual 33 53 783 839 Heating Dominion Energy South Normal 29 26 809 8
Slide 29: Weather: after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2022 YTD Dominion Energy Virginia2 $4 ($10) – – ($6) Versus normal¹ Dominion Energy South 4 5 – – 10 Carolina3 Gas Distribution4 1 0 – – 1 Total $9 ($4) – – $5 Q1 Q2 Q3 Q4 2022 YTD Dominion Energy Virginia2 $14 ($7) – – $7 Versus prior year¹ Dominion Energy
Slide 30: Consolidated financial outlook
Consolidated financial outlook Equity capital raising activities¹ Annual issuance ($B) Dividend reinvestment At-the-market Total (“DRIP”) (“ATM”) 2022E $0.2B $0.1—0.3B $0.3—0.5B 2023E – 2026E 0.2B 0.5—0.7B 0.7—0.9B All equity needs planned within existing DRIP and ATM programs; no block or marketed
Slide 31: Consolidated financial outlook
Consolidated financial outlook 2022 fixed income financing activities ($B)¹ Issuance range Issued To Come Dominion Energy Virginia $2.0—$2.5 $2.2 – Gas Distribution² $0.2—$0.4 – $0.2—$0.4 Dominion Energy South Carolina – – – Contracted Assets – – – DEI $1.0—$1.5 – $1.0—$1.5 Total $3.2—$4.4 $2.2 $1.2
Slide 32: Fixed income: credit ratings
Fixed income Credit Ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 33: Fixed income: credit ratings (cont'd)
Fixed income Credit Ratings (cont’d) East Ohio Gas Co. Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Stable Negative DESC Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ A- First Mortgage Bonds A3 A A+ Short-Term/Commercial Paper P-2 A-2 F2 Outl
Slide 34: Fixed income: long-term debt schedule
Fixed income Preliminary and unaudited schedule of long-term debt as of June 30, 2022 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 6/30/2022 Long-term at 6/30/2022 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2022-2052 3.98% $1,000 $14,435 DE Virginia
Slide 35: Fixed income: debt maturities
Fixed income Schedule of debt maturities as of June 30, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2022 3.45% 2010 Series A Senior Notes 09/01/22 VEPCO 300 - - - - 300 2.75% 2012 Series B Senior Notes 09/15/22 DEI - - - - 350 350 Term Loan Cr
Slide 36: Fixed income: debt maturities
Fixed income Schedule of debt maturities as of June 30, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2025 3.30% 2020 Series A Senior Notes 03/15/25 DEI - - - - 400 400 3.10% 2015 Series A Senior Notes 05/15/25 VEPCO 350 - - - - 350 1.30% 2020 S