Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q3 2020 Earnings Presentation
28 slides from Dominion Energy's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 earnings call
Q3 2020 earnings call November 5, 2020 Please refer to page 2 for risks and uncertainties related to projections and forward looking statements
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
Dominion Energy Compelling investment proposition Premier state-regulated utility operations Industry-leading clean energy profile Attractive long-term earnings and dividend growth Robust credit profile and balance sheet Focus on consistency and transparency Please refer to page 2 for risks and unce
Slide 4: Operating earnings per share
Operating earnings per share Actual vs. guidance Third quarter 2020 (reflects discontinued operations) $1.08 $1.05 $1.04 19 straight quarters of weather-normalized results that meet or Favorable weather exceed the midpoint of impact on utility $0.85 our quarterly guidance earnings: range +$0.04 19 s
Slide 5: Operating earnings per share
Operating earnings per share Actual and guidance YTD Q3 results and Q4/full-year guidance (reflects discontinued operations) $0.87 $3.63 Expect full-year $0.73 $3.37 $2.81 weather-normal $2.73 results to be above the midpoint ($3.50) of the Unfavorable 2020 guidance range weather impact on utility
Slide 6: Operating earnings per share
Operating earnings per share Guidance¹ ~10%—11% ~6.5% growth annual midpoint to EPS midpoint ~$3.85—$3.90² $3.50² Utility-focused, growth predictable and Includes programmatic investment estimated full- profile year impact of 2020 share ESG, customer growth and repurchases reliability-driven rat
Slide 7: Select updates
Select updates Summary Closed on sale of majority of assets to Berkshire Hathaway Energy on November 1 Gas Subsequent closing of sale of Questar Pipelines, awaiting HSR clearance, expected in early 2021 transmission, storage asset Received cash consideration of ~$1.3 billion for the sale of Qu
Slide 8: Safety
Safety OSHA recordable incident rate¹ ~40% better than 2019 record performance More than 3x lower than industry in 2018 100 employees each work year 1.78 Number of recordables per 1.44 1.50 1.34 1.32 1.06 1.02 1.04 1.00 0.92 0.88 0.80 0.65 0.68 0.62 0.38 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 9: Weather-normalized load
Weather-normalized load Electric sales volume vs. 2018/2019 average (through October 29) ~55- DomZone¹ ~15% DESC 60% DEV contribution (%) to total operating earnings DESC contribution (%) to total operating earnings Mar - Jun Q3 Mar - Oct Q3 (0.8%) improvement (2.9%) +1.4% +1.0% (4.8%) +0.1% Q3 impr
Slide 10: Reflections on select jurisdictions
Reflections on select jurisdictions Resilient state economies with improving regulated utility fundamentals State Highlights 1.4% electric customer growth / 27,000+ total customer connects YTD (+13% YoY) Virginia 13 data center campuses connected YTD (sales +19% YTD) 6.2% unemployment rate; de
Slide 11: Select business updates
Select business updates Summary Existing 2.6GW offshore wind project on-track 12MW pilot project will be first fully-permitted, operational wind project in federal waters Pilot turbines successfully completed reliability testing Offshore wind Sub-sea survey work continues for 2.6GW full-scal
Slide 12: Summary
Summary Safety performance on-track to set a new company record 19th consecutive quarter of weather-normal earnings at or above guidance midpoint Affirmed enhanced long-term earnings and dividend growth guidance Focused on executing robust organic growth plan Aggressively pursuing vision t
Slide 13: Appendix
Appendix Please refer to page 2 for risks and uncertainties related to projections and forward looking statements
Slide 14: 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 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q
Slide 15: Operating profile
Operating profile State-regulated utility operations Regulated-like Dominion Energy Dominion Energy Contracted Gas Distribution Assets Virginia South Carolina (formerly Contracted Generation) CT OH UT VA ID States of operation WY WV SC CA Southeastern UT & Mid-Atlantic NC UT U.S. NC Pro forma operat
Slide 16: State-regulated utilities
State-regulated utilities Customers Segment summary as of 9/30/2020 State summary Nine months ended DE Customers September 30 South Carolina 9/30/2020 (M) Gas Distribution ‘18-’20 CAGR 1.2M 3.0M DE Virginia 1.3% 2.7 17% 44% DE South Carolina 2.6% 1.2 Electric 2.0% 0.8 Gas 3.6% 0.4 6.9M state utility
Slide 17: Financing
Financing Equity capital market financing activities¹ 2020 2021 2022 2023 2024 DRIP $160M $300M $300M $300M $300M At-the-market (“ATM”) 0 0 0—200M 100—300M 300—500M Total $160M $300M $300—$500M $400—$600M $600—$800M ¹ Excl udes potential opportunistic financings, conversion of 2019 Equity Units i n
Slide 18: Weather
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2020 YTD Dominion Energy Virginia2 ($58) ($16) $35 — ($39) Versus normal¹ Dominion Energy South Carolina3 (9) (9) (3) — (21) Gas Distribution4 (5) 2 0 — (3) Total ($72) ($23) $32 — ($63) Q1 Q2 Q3 Q4 2020 YTD Dominion Energy Virginia2 ($26) ($22) ($2) — ($50
Slide 19: Weather
Weather Degree days Quarter ended 9/30 Nine months ended 9/30 2020 2019 2020 2019 Actual 19 0 1,908 2,042 Heating Normal 10 8 2,290 2,276 Dominion Energy Virginia Actual 1,256 1,299 1,708 1,948 Cooling Electric Normal 1,105 1,118 1,598 1,626 Actual 0 0 610 698 Heating Normal 0 0 828 842 Dominion Ene
Slide 20: Fixed income
Fixed income Financing Estimated long-term debt financings (remainder of 2020)1 Maturities Gross issuance Net issuance VEPCO2 $0M $800—$1,000M $800—$1,000M Other 300 0 ($300) Total $300M $800—$1,000M $500—$700M Credit agencies: Supportive of de-risking benefits from Total liquidity—$4.7B as of S
Slide 21: Financing Segment
Fixed income Long-term debt by segment (as of September 30, 2020) $15.4 $35.4 Total debt ($B)¹ $3.4 $0.9 $3.4 $12.4 Segment Dominion Dominion Gas Contracted Corporate and Energy Energy Total Distribution Assets Other Virginia South Carolina VEPCO DEO DESC Solar entities DEI Financing entities
Slide 22: Fixed income
Fixed income Preliminary and unaudited schedule of long-term debt as of September 30, 2020 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 9/30/2020 Long-term at 9/30/2020 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2022-2049 4.27% $ - $ 11,789 DE Virgin
Slide 23: Fixed income
Fixed income Schedule of debt maturities as of September 30, 2020 ($M) Dominion Energy, Inc. & Subsidiaries Financing Segment Due Date Entity DE Virginia Gas Dist DE SC C Assets Corp & Other Total 2020 2017 Series E Private Placement Sr. Notes (variable) 12/01/20 DEI - - - - 300 300 Sinks of various
Slide 24: Fixed income
Fixed income Schedule of debt maturities as of September 30, 2020 ($M) Dominion Energy, Inc. & Subsidiaries Financing Segment Due Date Entity DE Virginia Gas Dist DE SC C Assets Corp & Other Total 2023 2.45% 2019 Series B Private Placement Senior Notes 01/15/23 DEI - - - - 1,000 1,000 2.75% 2013 Ser
Slide 25: 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 26: 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 Fitch Corporate/Issuer Baa2 BBB+ BBB+ First Mortgage Bonds A3 A A Short-Term/Commercial Paper P-2 A-2 F2
Slide 27: Contracted assets
Contracted assets 2020 Millstone energy position Millstone hedging as of October 2020 7% open 1.1M MWh 56% long-term 15.6M contracted MWh in 8.7M MWh 37% hedged 2020 $49.99 5.8M MWh $36.70 ~93% of 2020 volumes de-risked at volume weighted average price of $41.57 Please refer to page 2 for risks and
Slide 28: Sales sensitivities
Sales sensitivities 2020 operating EPS impact for 1% (full-year) change in electric sales¹ DEV DESC Residential +/- $0.015 Residential +/- < $0.01 Commercial +/- $0.01 All other +/- < $0.01 All other +/- < $0.01 ¹ Refl ects only di rect sales i mpact Please refer to page 2 for risks and uncertaintie