Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q4 2018 Earnings Presentation
14 slides from Dominion Energy's earnings presentation, Feb 1, 2019
Slide 1: Fourth quarter 2018 earnings call
Fourth quarter 2018 earnings call February 1, 2019
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. The statements relate to, among other things, expectations, estimates and projections concerning the busines
Slide 3: Operating earnings per share
Operating earnings per share Actual versus guidance ($ per share) Fourth quarter 2018 2018 $4.10 $0.95 $4.05 $0.89 $3.95 Drivers vs. guidance $0.80 Operating expenses Income tax expense Depreciation Weather Cove Point in-service Storm expense Guidance¹ Actual¹ Guidance² Actual² ¹ See pages 28 and 34
Slide 4: Operating EBIT
Operating EBIT Actual versus guidance ($ millions) Fourth quarter 2018 2018 Operating Guidance range Actual¹ / Operating Guidance range Actual¹ / segment (midpoint) Drivers segment (midpoint) Drivers Power $225—$250 Storm Power $1,035—$1,080 Storm $211 $1,012 Delivery ($238) expense Delivery ($1,057
Slide 5: 2018 in review
2018 in review Establishing a foundation for success in 2019 and beyond Status Guidance Results Operating EPS ~10% YoY growth1 12.5% increase vs. 2017 actuals 11.0% increase vs. 2017 midpoint Dividend per share ~10% YoY growth2 10% increase vs. 2017 Non-core asset sales Pre-tax proceeds of $1.
Slide 6: Operating earnings per share
Operating earnings per share Guidance versus prior period actual ($ per share) 2019 First quarter 2019 $4.40 $1.25 $1.15 $4.05 $4.05 $1.05 Drivers vs. prior period Cove Point in-service Drivers vs. prior period Southeast Energy Group Cove Point in-service Regulated growth Southeast Energy Group Non-
Slide 7: Operating earnings per share
Operating earnings per share ($ per share) ~5% +5.6% (weather-normalized)² +4.3% (non weather-normalized) $4.05—$4.40 $4.05 Achieves 2017 to 2020 6% to 8% CAGR guidance Assumes ACP construction resumes in Q3 2019 Excludes Connecticut zero-carbon procurement resolution Excludes Blue Racer earn
Slide 8: 2019 external financing plan
2019 external financing plan Planned amount Issuer Planned financings ($M) Timing DRIP $300 Throughout year Mandatory convertible Converts August 15 DEI $1,400 remarketing¹ Remarketing Q2 Long-term debt/hybrids $1,300—$2,200 TBD VEPCO Long-term debt $1,100—$1,400 TBD DEGH Long-term debt $500—$700 TB
Slide 9: Upcoming investor meetings
Upcoming investor meetings What to expect March 25th — New York City and live webcast Two distinct presentations: Session one: General update Target audience: Investor and analyst community (equity and fixed income) Asset profile updates including Southeast Energy Group Updates supportive Ca
Slide 10: Safety
Safety OSHA recordable incidence rate Peer average: 1.06¹ 0.95 0.92 0.83 0.74 0.74 0.66 0.60 0.55 ~8% YoY improvement Company record for 2nd straight year ~50% lower than peer average 2011 2012 2013 2014 2015 2016 2017 2018 ¹ Represents the preliminary average 2018 OSHA recordable cases incidence ra
Slide 11: Business updates: Southeast Energy Group
Business updates Southeast Energy Group Pro forma footprint (select assets) Strategic and financial rationale DE electric utility Pro forma DE ~95% DE Carolina Gas Trans. business risk ~95% regulated/regulated-like Atlantic Coast Pipeline profile earnings SCG electric utility SCG gas utility Year-ov
Slide 12: Business updates: Key VEPCO initiatives
Business updates Key VEPCO initiatives GTSA summary SB 1355¹ Coastal Virginia Strategic Grid Environmental Utility solar Coal ash off-shore wind undergrounding transformation rider 2 turbine (12MW) Undergrounding Enhanced Upgrades to coal- Recycling and Regulated, Description off-shore pilot of elec
Slide 13: Business updates: Millstone & ACP
Business updates Millstone & ACP Location Highlights Began engaging in legislative process 3 years ago Deemed “at-risk” by regulators 10-year, 9 million MWh per year award from DEEP Millstone Initial pricing indication not acceptable Engaging with Governor to seek a result that recognizes
Slide 14: Summary
Summary Safety performance set new company record for 2nd straight year 2018 operating earnings per share exceeded guidance midpoint 2019 operating earnings per share guidance midpoint implies 5.6% annual growth1 2019 dividend per share growth of 10%² Successful execution of credit improve