Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q1 2023 Earnings Presentation
27 slides from Dominion Energy's earnings presentation, May 5, 2023
Slide 1: Q1 2023 earnings call
Q1 2023 earnings call May 5, 2023 Regulated. Resilient. Sustainable.
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: Business review: proceeding with pace and with purpose
Dominion Energy Business review ➔ Proceeding with pace and with purpose (no changes) Q3 call commentary: Commitments Q4 call commentary: Priorities ▪ Premier state-regulated utility profile ▪ Durable, high-quality, and predictable long-term earnings growth profile + consistent execution ▪ Industry-l
Slide 4: Business review timeline
Dominion Energy Business review timeline (no changes) Business review update Virginia legislative During Q2 2023 During Q3 2023 session (Today) Topic Bill number and link Investor day (no change) Rate relief SB 1265 & HB 1770 Offshore wind SB 1477 4
Slide 5: Overview of selected Virginia legislation
Overview of selected Virginia legislation Strong, consensus, bipartisan support for new regulatory construct Constructive utility framework with stakeholder support enhances durability to the benefit of both customers and capital providers ✓ Provides meaningful rate relief for customers Parameter Ke
Slide 6: Virginia's utility framework delivers results for customers
Dominion Energy Virginia Virginia’s utility framework delivers results for customers Reliable – DEV’s SAIDI Affordable – Residential electric customer rate (cents per kWh)¹ 23.9 10% 150 ~21% better 20.1 lower 16.0 135 14.0 13.3 Fuel 12.6 During 2022, our customers had power 99.9% of the time + no su
Slide 7: Robust demand growth
Dominion Energy Virginia Robust demand growth PJM DOM Zone summer peak PJM DOM Zone summer peak (GW) DEV electric sales growth¹ annual load growth (2023 – 2033) 2023 2033 63% 39% 35.8 6.1% 5.0% 4.8% 25.8 4.3% 21.9 2.1% 1.4% 0.5% 2021 PJM 2022 PJM 2023 PJM 2023E 2022 PJM 2023 PJM 2021 2022 LTM Q1 '23
Slide 8: Operating earnings per share
Operating earnings per share Q1 2023: Actual versus guidance ($ per share) $1.09 $1.12 $0.99 ▪ One of the warmest first Unfavorable weather quarters across our $0.97 service areas on record impact on utility earnings: ($0.10) ▪ Actual results met guidance range for the first quarter 2023; weather no
Slide 9: Operating earnings per share: Q2 guidance
Operating earnings per share Actual and guidance ($ per share) $0.77 $0.68 Q2 2023 (YoY drivers) ▲ Return to weather normal $0.58 ▲ Sales ▲ Millstone planned outage ▲ O&M timing ▼ Interest expense ▼ DEV margins ▼ Solar ITC ▼ Other Q2 '22 Guidance Q2 '23¹ ¹ See first quarter 2023 Earnings Release Kit
Slide 10: Best-in-class O&M control
Best-in-class O&M control Electric non-fuel O&M per sales ($/MWh) Updated $200 Top quartile D¹ Peer² $/MWh Electric non-fuel O&M Lower is better $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 D Ranking: 3rd 3rd 2nd 2nd 1st 2nd 2nd 2nd 2nd 2nd Note: Source of data is FERC Form 1 for respective
Slide 11: Regulated offshore wind
Dominion Energy Virginia Regulated offshore wind Milestone Target Record of Decision by BOEM 2H 2023 (no change) Construction completion Late 2026 (no change) ▪ 2.6 GW capacity; regulated cost-of-service rider ▪ Est. installed cost of ~$10B (including onshore ~90% transmission) (no change) Fixed cos
Slide 12: Selected business updates: data centers
Selected business updates ✓ Advancing electric transmission projects to bring both new and upgraded infrastructure to enable the continued connection and expansion of data center customers in eastern Loudoun County, VA ▪ Reconductoring of the 227, 2206, and 2152 lines ▪ Expected in-service by mid-20
Slide 13: Selected business updates
Selected business updates ✓ CE-3 approval: 6th consecutive solar rider filing approval DEV: Clean ▪ 800MW solar and battery storage Energy filings ▪ ~$1.3B in capital investment DEV: Grid ✓ Phase III application filed with SCC for investments through 2026 Transformation ▪ ~$1.1B in capital investmen
Slide 14: Summary
Summary ✓ Outstanding safety performance, driving to zero injuries ✓ Financial results consistent with guidance ✓ Executing an industry-leading regulated decarbonization and resiliency investment opportunity to benefit of all stakeholders ✓ Offshore wind project continues to move forward on schedule
Slide 15: Appendix
Appendix 15 83 \\\y
Slide 16: Overview of selected Virginia legislation: biennial review
Overview of selected Virginia legislation Biennial review summary First biennial Second biennial Third biennial Initial filing July 2023 March 2025 March 2027 Final order ~March 2024 Late 2025 Late 2027 Investment under review “Base” only – Rider investment outside scope Years reviewed 2021 – 2022 2
Slide 17: Regulatory summary pro forma Virginia legislation
Dominion Energy Virginia Regulatory summary pro forma Virginia legislation DENC/other, ~$4B (no changes) VA base, ~$10B (existing) Electric ~$32B Transmission 2022E rider, ~$9B rate base (no changes) VA riders rolled into VA base, ~$2B¹ (pro forma) VA riders², ~$7B (pro forma) No change to rider rec
Slide 18: Regulated electric sales growth
Regulated electric sales growth LTM¹ Q1 ’23 YoY weather normal sales growth² Regulated electric sales trends Residential Commerical Industrial Govt/Other Total ✓ Robust commercial load growth driven by Data Centers 11.4% ✓ Residential segment growth driven by attractive 4.9% customer growth across o
Slide 19: Fuel cost impacts
Fuel cost impacts Actively managing fuel recovery with a focus on customer impacts Latest fuel clause Under-recovered Commentary change as % bill¹ balance (March 2023) ▪ 12-M fuel clause to reset to current forecast and true-up prior year DEV – Virginia (5%)² $1.4B ▪ Adjustments: 36-M recovery of un
Slide 20: Customers: state-regulated utilities
Customers State-regulated utilities Segment summary as of 3/31/2023 State summary Three months ended DE Customers March 31 South Carolina 3/31/2023 (M) Gas Distribution ‘21-’23 CAGR 1.2M 3.0M 18% DE Virginia 1.1% 2.7 43% DE South Carolina 2.4% 1.2 Electric 1.7% 0.8 Gas 3.6% 0.4 7.0M state utility Ga
Slide 21: Weather: after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($64) – – – ($64) Versus normal¹ Dominion Energy South (15) – – – (15) Carolina3 Gas Distribution4 (3) – – – (3) Total ($82) – – – ($82) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($67) – – – ($67) Versus prior year¹ D
Slide 22: Weather: degree days
Weather Degree days Quarter ended 3/31 Three months ended 3/31 2023 2022 Actual 1,471 1,895 Heating Normal 1,924 1,973 Dominion Energy Virginia Actual 3 11 Cooling Electric Normal 5 5 Actual 459 750 Heating Dominion Energy South Normal 779 780 Carolina Actual 1 0 Cooling Normal 0 0 Actual 459 750 SC
Slide 23: Fixed income: credit ratings
Fixed income Credit ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 24: Fixed income: credit ratings (cont'd)
Fixed income Credit ratings (cont’d) East Ohio Gas Co. Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Negative Negative DESC Moody’s S&P Fitch Corporate/Issuer Baa1 BBB+ A- First Mortgage Bonds A2 A A+ Short-Term/Commercial Paper P-2 A-2 F2 Ou
Slide 25: Fixed income: schedule of long-term debt
Fixed income Preliminary and unaudited schedule of long-term debt as of March 31, 2023 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 3/31/2023 Long-term at 3/31/2023 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2024-2053 4.16% $350 $15,585 DE Virginia V
Slide 26: Fixed income: schedule of debt maturities
Fixed income Schedule of debt maturities as of March 31, 2023 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2023 2020 Series D Senior Notes (variable) 09/15/23 DEI - - - - 1,000 1,000 Sinks of various debt obligations multiple multiple - - - 102 - 10
Slide 27: Fixed income: schedule of debt maturities
Fixed income Schedule of debt maturities as of March 31, 2023 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2026 3.15% 2016 Series A Senior Notes 01/15/26 VEPCO 750 - - - - 750 6.99% Private Placement Senior Notes 01/15/26 PSNC - 50 - - - 50 1.45% 20