Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q1 2017 Earnings Presentation
17 slides from Dominion Energy's earnings presentation, May 4, 2017
Slide 1: First Quarter 2017 Earnings Call
First Quarter 2017 Earnings Call May 4, 2017
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 and Dominion Midstream. The statements relate to, among other things, expectations, estimates and projections concer
Slide 3: Operating Earnings Summary
Operating Earnings Summary First Quarter 2017 Versus Guidance $1.10 Weather Norm.: $1.05 1st Quarter Drivers Versus Guidance $0.97 Weather normalized electric sales $0.90 Lower income taxes Lower operating expenses Weather Guidance Actual Range Operating EPS* *See page 30 of the first quarter 2017 E
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary First Quarter 2017 Versus Guidance (in $millions) Operating Guidance Actual Drivers versus Guidance Segment EBITDA EBITDA Weather Dominion Virginia $400 - $435 $414 Weather normalized electric sales Power Transmission growth Weather Dominion Weather normalized electric sales
Slide 5: Dominion Midstream Partners (DM) First Quarter 2017 Earnings and Distribution
Dominion Midstream Partners (DM) First Quarter 2017 Earnings and Distribution – Financial results in line with management expectations • Net Income $52.2 million • Adjusted EBITDA $75.4 million*- ~3x increase over 1Q 2016 • Distributable Cash Flow $44.1 million* - ~2x increase over 1Q 2016 – Distrib
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities First Quarter 2017 – Cash flow & liquidity • $1.4 billion in cash from operating activities during 1Q 2017 • $5.5 billion of credit facilities • $3.2 billion of liquidity at quarter end – Recent significant financing activities • DRI $1.2 billion of total senior no
Slide 7: Long-term Financing Activities
Long-term Financing Activities 2017 Financing Plan ($ millions) Entity Financing Plan Completed DRI DRIP Equity $300 On track DRI Debt 1 $2,000 - $2,300 $1,200 DRI 2014 MC Jr Debt Remarketing 2 $1,000 - VEPCO Debt $1,400 - $1,700 $750 DGH Debt $0 - QGC Debt $75-$125 - DM Debt/Equity $0 - Total $4,77
Slide 8: Dominion Midstream Benefits to Dominion
Dominion Midstream Benefits to Dominion Uses of Cash from Asset Contributions and Distributions Dominion expects to generate ~$7 - $8 billion in cash from Dominion Midstream Partners from 2016-2020* Strengthen Delever DRI as a percent of overall leverage to ~30% - 40% by 2020 Balance Sheet Suppor
Slide 9: Operating Earnings Guidance
Operating Earnings Guidance Second Quarter 2017 $0.70 2nd Quarter Drivers $0.71 Return to normal weather $0.60 Cove Point import contract roll-off Millstone margins Solar investment tax credits 2Q 2016 2Q 2017 EPS* Guidance* *See page 36 and 37 of the first quarter 2017 Earnings Release Kit for a re
Slide 10: Financial Summary
Financial Summary – First quarter operating earnings of $.97 per share* • Near the top of guidance excluding 8 cent per share impact of weather – Second-quarter operating earnings guidance of $.60-$.70 per share* – 2017 operating earnings guidance range of $3.40 - $3.90 per share* – Operating EPS to
Slide 11: Generation Growth Project Update – Greensville
Dominion Generation Growth Project Update – Greensville – Construction of a 1,588 MW plant in Greensville County, VA Project is 30% – Gas Fired Combined Cycle complete Charlottesville • 3-on-1 Combined Cycle Richmond • Duct burners, inlet air chillers, gas only Greensville – Estimated Costs of $1.3
Slide 12: Generation Growth Project Update – Solar
Dominion Generation Growth Project Update – Solar Focus on Virginia and North Carolina solar demand Project State Capacity Expected In-service Eastern Shore Solar VA 80 MW 4Q 2016 Scott, Whitehouse, Woodland Solar VA 56 MW 4Q 2016 Summit Farms Solar NC 60 MW 4Q 2016 Additional projects VA 180
Slide 13: Virginia Power Growth Project Update
Dominion Virginia Power Growth Project Update – ProfileElectric Transmission – Tax Strategic Reform Undergrounding • 500 kV loop rebuild and other large • Designed to place underground ~4,000 traditional projects provide substantial miles of most vulnerable distribution backlog of growth opportuniti
Slide 14: Energy Growth Project Update – Cove Point Liquefaction
Dominion Energy Growth Project Update – Cove Point Liquefaction Construction is On-time & On-budget – Engineering and procurement are essentially complete – Completed setting all major equipment in December – Commissioning underway for auxiliary boilers and supporting systems – Filed request with DO
Slide 15: Atlantic Coast Pipeline and DTI Supply Header
Dominion Energy Atlantic Coast Pipeline and DTI Supply Header ACP OWNERSHIP STRUCTURE: – Received FERC Draft EIS Dominion Resources* Duke Energy 48% 47% Supply Header receipt points December 30 Southern Company 5% SUPPLY HEADER OWNERSHIP: – FERC comment period Dominion Resources* 100% ended early Ap
Slide 16: Key Takeaways
Key Takeaways First Quarter 2017 Earnings and Operational Highlights Executing the growth plan and delivering on guidance – Dominion Operating earnings of $0.97 per share within the first quarter guidance range* – Strong operating and safety performance in first quarter 2017 – Greensville County pro
Slide 17: First Quarter 2017
First Quarter 2017 17