Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q3 2023 Earnings Presentation
30 slides from Dominion Energy's earnings presentation, Nov 3, 2023
Slide 1: Q3 2023 earnings call
Q3 2023 earnings call November 3, 2023
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: Employee safety
Dominion Energy Employee safety OSHA recordable incident rate¹ ~46% improvement vs. 2016 ~74% safer than industry average 100 employees each work year Number of recordables per 1.78 1.65 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 0.46 0.52 0.41 0.43 2006 2007 2008 2009 2010 201
Slide 4: Business review: Steps to date
Dominion Energy Business review: Steps to date Step Status Bipartisan passage of 2023 legislation in Virginia that delivers exceptional value for customers and puts Dominion Energy Virginia on solid and durable long-term footing 100% committed to current dividend Improved earnings quality by eli
Slide 5: Business review: Steps to date (continued)
Dominion Energy Business review: Steps to date (continued) Step Status Continued focus on best-in-class cost efficiency + reliability Governance: Modified CEO compensation to more closely align to investor returns Governance: Continued board refreshment consistent with best practice Each step
Slide 6: Business review: Strong progress but not complete
Dominion Energy Business review: Strong progress but not complete Final strategic step Status Noncontrolling equity financing partner in regulated offshore wind project (CVOW) Enabling legislation enacted¹ Currently in advanced stages of a robust process to transact with a partner Advanced stage
Slide 7: Regulated offshore wind: First monopiles for CVOW arrive at Portsmouth Marine Terminal
Dominion Energy Virginia Regulated offshore wind: First monopiles for CVOW arrive at Portsmouth Marine Terminal “It was such an honor to celebrate the highly anticipated delivery of the first foundations for the Coastal Virginia Offshore Wind project. Our ‘All of the Above’ energy approach is increa
Slide 8: Regulated offshore wind: Status update
Dominion Energy Virginia Regulated offshore wind: Status update Timeline Expected construction completion: End of 2026 (no change) September 29: Final Environmental Impact Statement issued Permitting October 30: Record of Decision signed (commencement of onshore construction) July 2023: 2022
Slide 9: Regulated offshore wind: Status update (continued)
Dominion Energy Virginia Regulated offshore wind: Status update (continued) LCOE (updated)¹: $77/MWh³ compared to previous range of $80 to $90/MWh Legislative prudency cap (no change): $125/MWh4 LCOE sensitivity table LCOE impact to $77/MWh Current assumption¹ (+/-) $100M of capital costs +/- $0
Slide 10: Regulated offshore wind: Status update (continued)
Dominion Energy Virginia Regulated offshore wind: Status update (continued) Completion status (updated): 77% compared to previous update of 74% Expected completion date (no change): Late 2024/early 2025 Later than planned; still supportive of CVOW schedule inclusive of any 3rd party charter ag
Slide 11: Selected business updates
Selected business updates Biennial review ongoing Not seeking a base rate increase per Virginia 2023 legislation Authorized ROE for the upcoming biennial review period shall be set at 9.70%¹ Biennial review Reasonable efforts to maintain 52.1% common equity¹ Staff and intervenor testimony
Slide 12: Selected business updates
Selected business updates Grid Transformation Plan approved by SCC Grid ~$0.8B capital investment through 2026 for Phase III of DEV’s plan for electric Transformation distribution grid transformation projects authorized by the Grid Transformation and Security Act Fuel securitization applicatio
Slide 13: Operating earnings per share: Q3 2023 actual versus guidance
Operating earnings per share Q3 2023: Actual versus guidance ($ per share) $0.82 $0.77 $0.75 $0.67 Favorable weather impact on utility earnings: $0.02 Q3 '23¹ Q3 '23 weather normal² Q3 '23 guidance¹ ¹ Dominion Energy updated guidance range September 5, 2023. Previous guidance range of $0.72 to $0.87
Slide 14: Operating earnings per share: Q4 and FY 2023 guidance
Operating earnings per share Q4 and FY 2023 guidance ($ per share) ~$0.80 ~$2.90 $0.35 $2.10 $1.75 Adjustments ▲ Historically mild weather4 +$0.16 Q4 2023 (YoY drivers) ▲ Interest savings from announced asset ▲ Sales/regulated investment/margins sales +$0.50 ▼ Interest expense ($0.12) ▲ Millstone un
Slide 15: Post-review financial outlook
Post-review financial outlook FY 2025E operating earnings per share 2025 will be the foundational year for post-review financial performance given transitional nature of 2023/2024 2025 guidance will be given at an investor event after the completion of the business review in late 2023 or early 2
Slide 16: Fixed income: Interest rate exposure
Fixed income Interest rate exposure: D benchmarks well relative to peers Three-year rate exposure: fixed rate maturities + variable rate debt as a percentage of total current debt Adjusted for announced asset sales, D’s rate exposure for fixed rate 38% maturities and variable rate debt through 202
Slide 17: Summary
Summary Commendable safety performance Significant steps taken to achieve the objectives of the business review; moving with urgency and care as review nears conclusion We recognize the importance of delivering a compelling review result and executing flawlessly thereafter Offshore wind proj
Slide 18: Appendix
Appendix W Dominion Energy’
Slide 19: Business review (no changes)
Dominion Energy Business review (no changes) Q3 call commentary: Commitments Q4 call commentary: Priorities Premier state-regulated utility profile Durable, high-quality, and predictable long-term earnings growth profile + consistent execution Industry-leading regulated investment opportunity
Slide 20: Best-in-class O&M control
Best-in-class O&M control Electric non-fuel O&M per sales ($/MWh) $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 annual p
Slide 21: Regulated offshore wind: approved cost-sharing settlement
Regulated offshore wind Approved settlement in Virginia for balanced and reasonable cost-sharing Cost-sharing thresholds Customers Shareholders Capital budget¹ of ~$9.8B 100% 0% $9.8B – $10.3B 100% 0% DEV, OAG, Walmart, Sierra Club, and Appalachian Voices filed a settlement $10.3B – $11.3B 50% 50% a
Slide 22: Discontinued operations
Discontinued operations Impact on financial reporting segments and results Related to sales (announced and completed) of interests in gas utilities and Cove Point: GAAP treatment: Presented as held for sale and discontinued operations within Corporate and Other segment Operating earnings treatme
Slide 23: Regulated electric sales growth
Regulated electric sales growth DEV and DESC combined LTM¹ Q3 ’23 YoY weather normal sales growth² Regulated electric sales trends Residential Commercial Industrial Govt/Other Total Robust commercial load growth driven by Data Centers 9.6% Residential segment driven by attractive customer 2.1% 3
Slide 24: Customers: State-regulated utilities
Customers State-regulated utilities Segment summary Q3 2023 State summary Three months ended Average September 30 Customers Q3 DE ‘21-’23 CAGR 2023 (M) South Carolina 1.2M DE Virginia 1.0% 2.8 31% DE South Carolina 2.5% 1.2 Electric 1.8% 0.8 4.0M state utility Gas 3.8% 0.4 customers Total utility cu
Slide 25: Weather: degree days
Weather Degree days Quarter ended 9/30 Nine months ended 9/30 2023 2022 2023 2022 Actual 2 17 1,677 2,209 Heating Normal 6 6 2,190 2,270 Dominion Energy Virginia Actual 1,224 1,222 1,585 1,735 Cooling Electric Normal 1,192 1,196 1,740 1,718 Actual 0 0 484 783 Heating Dominion Energy South Normal 0 0
Slide 26: Weather: after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($64) ($51) $14 – ($101) Versus normal¹ Dominion Energy South (15) (20) 3 – (32) Carolina3 Total ($79) ($71) $17 – ($133) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($67) ($42) $3 – ($106) Versus prior year¹ Dominion E
Slide 27: Fixed income: Credit ratings
Fixed income Credit ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 28: Fixed income: Schedule of long-term debt
Fixed income Preliminary and unaudited schedule of long-term debt as of September 30, 2023 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 9/30/2023 Long-term at 9/30/2023 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2024-2053 4.25% $350 $16,585 DE Virgin
Slide 29: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of September 30, 2023 ($M) Financing Segment Due Date Entity DE Virginia DE SC Con Energy Corp & Other Total 2023 - - - - - 2024 364-Day Term Loan (variable) 01/12/24 DEI - - - 2,500 2,500 3.45% 2014 Series A Senior Notes 02/15/24 VEPCO 350 - - - 350 3.496
Slide 30: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of September 30, 2023 ($M) Financing Segment Due Date Entity DE Virginia DE SC Con Energy Corp & Other Total 2026 3.15% 2016 Series A Senior Notes 01/15/26 VEPCO 750 - - - 750 1.45% 2021 Series A Senior Notes 04/15/26 DEI - - - 564 564 2.85% 2016 Series D