Dominion Energy, Inc. · NYSE:D

Dominion Energy — Q3 2018 Earnings Presentation

14 slides from Dominion Energy's earnings presentation, Nov 1, 2018

  1. Slide 1: Third Quarter 2018 Earnings Call

    Third Quarter 2018 Earnings Call November 1, 2018

  2. 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 and Dominion Energy Midstream Partners. The statements relate to, among other things, expectations, estimates

  3. Slide 3: Operating earnings summary

    Operating earnings summary Actual versus guidance ($ per share) Third quarter 2018 Year-to-date 2018 $3.10 $3.16 $1.15 $1.15 Drivers vs. guidance $2.60 Operating expenses $0.95 Drivers vs. guidance Generation margins Operating expenses Tax expense/tax reform Generation margins Regulated growth Weath

  4. Slide 4: Operating EBITDA summary

    Operating EBITDA summary Third quarter 2018 versus guidance ($ millions) Guidance range Operating segment (midpoint) Actual¹ $750—$820 Power Generation $820 ($785) $420—$455 Power Delivery $434 ($438) $565—$605 Gas Infrastructure $598 ($585) ¹ See page 34 of the third quarter 2018 Earnings Release K

  5. Slide 5: Dominion Energy Midstream Partners (DM)

    Dominion Energy Midstream Partners (DM) – Third quarter 2018 financial results in line with management expectations • Adjusted EBITDA: $76.0 million¹ • Distributable cash flow: $50.1 million¹ – Distributions • Board approved 3Q 2018 cash distribution of $0.3690 per unit  5% increase over second-qua

  6. Slide 6: Financing and related activities

    Financing and related activities Credit improvement initiatives complete Status Commentary Use of proceeds  Closed and  $3 billion non-recourse term loan Reduce Cove Point initial funding  Strong demand parent-level financing debt completed  Attractive pricing and terms  Agreements Merchant exe

  7. Slide 7: Financing and related activities

    Financing and related activities Cash sources Benefits $3.0B ~$8.0B+ Parent-level debt reduction (2 years early) ~$2.8B¹ Credit metrics support existing ratings ~$2.3B Reduce business risk Equity Non-core asset Cove Point Total sales financing ¹ Including value of up to $300M of on-going earn-out pa

  8. Slide 8: Operating earnings guidance

    Operating earnings guidance Fourth quarter and full-year ($ per share) Fourth quarter 2018 Full-year 2018 $0.95 $0.95 ~$4.10 $0.91 $0.80 ~$3.95 $3.16 $0.80 4Q earnings drivers Cove Point export  2018 operating EPS: Tax expense/reform $3.95 to $4.10 per share Solar ITCs  2017—2020 operating EPS CAG

  9. Slide 9: Safety performance

    Safety performance OSHA recordable cases incidence rate 0.95 0.92 Peer median: 0.83 0.84¹ 0.74 0.74 0.66 0.60 0.48 2011 2012 2013 2014 2015 2016 2017 2018 YTD ¹ Represents the median 2018 YTD OSHA recordable cases incidence rate for 17 peers included in the Southeastern Electric Exchange industry gr

  10. Slide 10: Operating highlights

    Operating highlights Operating segment Highlights Power  Record-setting reliability Generation Group  Industry-leading performance Power Delivery  Effective and timely response to 6th largest outage event in company history Group Gas  Nearly 100 Bcf liquefied since commercial ISD Infrastructure

  11. Slide 11: Business unit updates

    Business unit updates Operating segment Highlights  Greensville: 98% complete; December in-service  VA solar: 4th largest utility owner of solar in U.S. Power Generation  Nuclear relicensing: ~$4B investment program Group  Offshore wind: $300M pilot project  Millstone: CT zero-carbon process ad

  12. Slide 12: Business unit updates

    Business unit updates Operating segment Highlights  Constructing in WV and NC  VA DEQ permit received  FERC Notice to Proceed for VA requested  Anticipated project cost: Gas  $6.5B—$7.0B (100% of project) Infrastructure  ~$500M increase from prior estimate Group  Pursuing phased in-service wi

  13. Slide 13: Merger with SCANA

    Merger with SCANA – Key approvals  SCANA shareholders  Georgia  FERC  FTC clearance  NRC • North Carolina  Settlement reached  Commission approval expected in December • South Carolina 5 of 7 approvals complete Please refer to page 2 for risks and uncertainties related to projections and forw

  14. Slide 14: Earnings and operational highlights

    Earnings and operational highlights  Successful execution of credit improvement initiatives  Improved business risk profile  Three consecutive quarters of very strong earnings results  Expect to be above the midpoint of full-year operating earnings guidance range  Continued excellence in safety

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