Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2021 Earnings Presentation
29 slides from Dominion Energy's earnings presentation, Aug 6, 2021
Slide 1: Q2 2021 earnings call
Q2 2021 earnings call August 6, 2021
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% ~3.3% ~10% ESG EPS growth rate dividend shareholder through 2025 yield return profile $32B 6% Industry’s largest 5-year growth regulated capital plan annual DPS Pure-play growth state-regulated decarboniza
Slide 4: Operating earnings per share
Operating earnings per share Q2 2021: Actual versus guidance ($ per share) $0.80 22 $0.76 $0.77 consecutive Unfavorable weather $0.70 quarters impact on utility earnings: of delivering ($0.01) weather-normal results that meet or exceed quarterly guidance midpoint Actual¹ Weather normal² Guidance¹ ¹
Slide 5: Guidance
Guidance Operating earnings and dividends per share Earnings Dividends $0.95—$1.10 ▲ Regulated growth Q3 2021 ▲ 2020 share repurchase Target payout 65% (YoY drivers) ▼ Normal weather ratio (no change) ▼ COVID deferred O&M ▼ Depreciation/interest expense/other 2021 $3.70—$4.00 2021 $2.52 (no change)
Slide 6: Select financial updates
Select financial updates ✓ Mutually terminated by Dominion Energy and Berkshire Hathaway Energy Questar ✓ In advanced stages of competitive sales process—Target close by year end 2021 Pipeline sale ✓ No impact on existing financial guidance—Q-Pipe to continue to be classified as discontinued operati
Slide 7: Safety—OSHA recordable incident rate
Employees Safety—OSHA recordable incident rate¹ 2.05 1.78 100 employees each work year Number of recordables per 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 0.41 0.38 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2019 2021 Industry average² ¹ Pro
Slide 8: Premier state-regulated utility operating segments
Premier state-regulated utility operating segments ✓ Customer + economic growth ✓ “Common sense” regulation Virginia ✓ Sustainability-focus North Carolina #1 Utah #2 Ohio #3 Top 10 8
Slide 9: Operational excellence
Operational excellence Dominion Energy employees exemplify our five core values: ▪ Safety ▪ Ethics ▪ Excellence ▪ Embrace change ▪ One Dominion Energy 9
Slide 10: Dominion Energy Virginia
Dominion Energy Virginia 2.6GW offshore wind project Milestones Target Construction & Operation Plan submitted ✓ Dec. 2020 Notice of Intent issued by BOEM ✓ July 2021 CPCN/Rider filing with VA SCC Fall 2021 Record of Decision published by BOEM June 2023 Jones-Act compliant installation vessel COD La
Slide 11: Dominion Energy Virginia
Dominion Energy Virginia Triennial review—As filed 10.42% Milestone Date (2017 – 2020) Intervenor testimony September 3, 2021 Earned ROE 9.61%¹ Staff report September 17, 2021 (adjusted for arrears forgiveness) Company rebuttal October 1, 2021 Eligible CCRO $309M Hearing October 25, 2021 Final order
Slide 12: Dominion Energy Virginia
Dominion Energy Virginia Executing the plan for the benefit of customers ✓ Fourth consecutive SCC approval for solar investments ✓ Virginia solar development pipeline approaching 4,000MW Clean Energy ✓ Next clean energy filing (September) expected to include up to 1,200MW of filings owned and PPA re
Slide 13: Gas Distribution
Gas Distribution Sustainability 2.0 Enhancing sustainability Status Empowering customers to manage emissions ▪ GreenTherm (UT; pending in NC) ▪ Voluntary Carbon Offsets (pending in UT) Expanding hydrogen blending pilots ▪ UT (underway) ▪ NC (pending approval) ▪ OH (exploring next steps) Milford
Slide 14: Dominion Energy South Carolina
Dominion Energy South Carolina Electric rate case, modified IRP = Approved SC PSC unanimously approved a comprehensive electric rate case settlement supported by all parties, which allows DESC and stakeholders to focus attention on South Carolina’s bright energy future ▪ Significant customer benefit
Slide 15: Summary
Summary ✓ Safety performance on track to surpass last year’s record-setting performance ✓ 22nd consecutive quarter of weather-normal earnings at or above guidance midpoint ✓ Affirmed existing earnings and dividend growth guidance ✓ Executing across the largest regulated decarbonization investment op
Slide 16: Appendix
Appendix 16 83 \\\y
Slide 17: Operating segments
Operating segments Summary¹ State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT UT VA H ID W States of operation Y WV SC CA Southeastern UT & Mid- NC UT Atlantic U.S. NC 2021 operating ~57% ~17% ~13% ~12% earnings contrib
Slide 18: Customers
Customers State-regulated utilities Segment summary as of 6/30/2021 State summary DE Three months ended South Carolina Customers Gas Distribution June 30 1.2M 6/30/2021 (M) 3.1M ‘19-’21 CAGR 17% 44% DE Virginia 1.5% 2.7 DE South Carolina 2.4% 1.2 Electric 1.8% 0.8 6.9M Gas 3.5% 0.4 state utility cus
Slide 19: Purpose-driven
Purpose-driven Comprehensive stakeholder approach Dominion Energy is driven by our belief that the best companies seek to: ✓ Consider the interests of all stakeholders as critical to success including employees, customers & communities and investors ✓ Adopt ambitious Investors climate goals that dri
Slide 20: Compelling investment proposition
Compelling investment proposition Decarbonization initiatives extend beyond 5-year plan; benefits customers, communities, environment 2020 – 2035 total opportunity Gas 2020 – 2025 portion of total opportunity distribution modernization Electric grid / RNG Nuclear transformation Up to $9B ~$72B life
Slide 21: Environment
Environment Investing in support of our clean-energy profile Five-year growth capital (2021—2025) ~$32B $10B/43% vs. prior five-year (2019-2023) growth capex plan¹ Zero-carbon generation & energy storage ▪ Offshore wind ~82% $17B / 52% ▪ Solar ▪ Energy storage ▪ Nuclear relicensing Emissions reduct
Slide 22: Environment
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 44%↓ 37% 45% ~70%— ~69% ~99% 7% 80%↓ Net zero zero & (conforms to 1.5o low Paris Accord emitting 45% Goals) 52%
Slide 23: Operating earnings per share
Operating earnings per share Track-record of successful execution Weather normalized operating EPS vs. guidance Upper end guidance Guidance midpoint Lower end guidance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Over 5 years of delive
Slide 24: Consolidated financial outlook
Consolidated financial outlook Equity capital raising activities¹ Annual issuance ($M) Dividend reinvestment At-the-market Total (“DRIP”) (“ATM”) 2021E $300M $0M $300M 2022E 300M 0—200M 300—500M 2023E 300M 100—300M 400—600M 2024E 300M 300—500M 600—800M 2025E 300M 300—500M 600—800M Total $1.5B $0.7—$
Slide 25: Consolidated financial outlook
Consolidated financial outlook 2021 long-term debt issuance plan ($ billions)¹ Issuance guidance range Issued YTD Remaining Dominion Energy Virginia $0.7—$1.0 $0 $0.7—$1.0 Gas Distribution $0.3—$0.5 $0.15 $0.15—$0.35 Dominion Energy South Carolina $0.4—$0.6 $0 $0.4—$0.6 Contracted Assets $0 $0 $0 DE
Slide 26: Weather
Weather Degree days Quarter ended 6/30 Six months ended 6/30 2021 2020 2021 2020 Actual 285 371 2,174 1,889 Heating Normal 291 290 2,261 2,280 Dominion Energy Virginia Actual 509 438 520 452 Cooling Electric Normal 489 488 494 493 Actual 53 32 839 610 Heating Dominion Energy South Normal 27 27 806 8
Slide 27: Weather
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2021 YTD Dominion Energy Virginia2 ($10) ($2) – – ($12) Versus normal¹ Dominion Energy South 4 (7) – – (3) Carolina3 Gas Distribution4 (1) 1 – – (1) Total ($8) ($8) – – ($16) Q1 Q2 Q3 Q4 2021 YTD Dominion Energy Virginia2 $51 $14 – – $65 Versus prior year¹
Slide 28: Fixed income
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 29: Fixed income
Fixed income Credit ratings (cont’d) Dominion Energy Ohio Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Positive Stable DESC Moody’s S&P Fitch¹ Corporate/Issuer Baa2 BBB+ A- First Mortgage Bonds A3 A A+ Short-Term/Commercial Paper P-2 A-2 F2