Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2016 Earnings Presentation
16 slides from Dominion Energy's earnings presentation, Aug 3, 2016
Slide 1: Second Quarter 2016 Earnings Call
Second Quarter 2016 Earnings Call August 3, 2016
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 Second Quarter 2016 Versus Guidance $0.75 $0.71 2nd Quarter Drivers Lower operating expenses $0.65 Mild weather Major storm restoration Guidance Actual Range Operating EPS* *See page 30 of the second quarter 2016 Earnings Release Kit for a reconciliation to GAAP. Please re
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary Second Quarter 2016 Versus Guidance (in $millions) Operating Guidance Actual Drivers Segment EBITDA EBITDA Lower operating expenses Dominion Virginia $355 - $390 $363 Mild weather Power Major storm restoration Dominion Lower operating expenses $475 - $530 $509 Generation Mil
Slide 5: Dominion Midstream Partners – Second Quarter 2016 Earnings and Distribution
Dominion Midstream Partners (DM) Second Quarter 2016 Earnings and Distribution – Financial Results in line with Management expectations • Net Income $22.5 million • Adjusted EBITDA $27.2 million* • Distributable Cash Flow $23.8 million* – Distribution Results • Board declared 2Q 2016 cash distributi
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities Second Quarter 2016 – Cash Flow & Liquidity • $2.0 billion in funds from operations for first half of 2016 • $5.5 billion of credit facilities • $2.8 billion of liquidity – Recent Financing Activities Equity Debt • DRI $750 million common equity • DGH 2016 financin
Slide 7: Operating Earnings Guidance – Third Quarter 2016
Operating Earnings Guidance Third Quarter 2016 $1.10 3rd Quarter Drivers $1.03 $0.95 Growth projects Lower capacity expense Absence of a farmout agreement Share dilution 3Q 2015 3Q 2016 EPS* Guidance* *See page 36 and 37 of the second quarter 2016 Earnings Release Kit for a reconciliation to GAAP. P
Slide 8: Operating Earnings Guidance – Fourth Quarter 2016
Operating Earnings Guidance Fourth Quarter 2016 Drivers $4.00 $0.47 $3.60 ($0.07) $.08 Weather $0.70 ($.04) Sharecount / Financing $.08 Capacity Expense $2.70 ($.03) DD&A $.08 Growth $.08 Tax $.08 O&M / Other $.07 Millstone Outage Expected strong 4th quarter provides year-over-year growth 3Q 2016 YT
Slide 9: Hedged Power Update
Hedged Power Update Millstone Hedge Position 95% Hedged 8% Hedged* $56.97 $51.51 $42.40 $37.95 $29.25 $25.65 2015 2016 2017 NEPOOL Baseload Avg Hedge Position NEPOOL ATC Power Price *For 2017, we have hedged only off-peak Millstone capacity. 2016-2017 forward curves as of July 22, 2016. Please refer
Slide 10: Growth Project Update – Brunswick
Dominion Generation Growth Project Update – Brunswick – 1,358 MW Brunswick County Power Station • 3-on-1 gas fired combined cycle Charlottesville • Began commercial operations in April Richmond Completed construction ahead of schedule Brunswick – Expected to save customers over $1 billion in fuel
Slide 11: Growth Project Update – Greensville
Dominion Generation Growth Project Update – Greensville – 1,588 MW plant in Greensville County, VA • 3-on-1 gas fired combined cycle • Duct burners, inlet air chillers, gas only Charlottesville Richmond – Estimated Costs of $1.3 billion Greensville – Major Milestones • Final air permit issued in Jun
Slide 12: Growth Project Update – Solar
Dominion Generation Growth Project Update – Solar – Utah long-term contracted solar projects expected in- service this Fall • Four Brothers – 50% ownership in 320 MW facility • Three Cedars – 50% ownership in 210 MW facility – Virginia solar projects • Construction underway of Eastern Shore, Virgini
Slide 13: Growth Project Update – Cove Point Liquefaction
Dominion Energy Growth Project Update – Cove Point Liquefaction Construction is On-time & On-budget – Engineering is ~99% complete – Procurement of engineered equipment is ~99% complete – 1,800 construction workers on-site Project is ~67% Heat exchanger complete Please refer to page 2 for risks and
Slide 14: Growth Project Update – ACP, Supply Header, Other Energy
Dominion Energy Growth Project Update – ACP, Supply Header, Other Energy – Atlantic Coast Pipeline & Supply Header (1.5 Bcf/day each) • Filed FERC Applications September 2015 • Amendment filed in March with an updated route • Notice of Intent received from FERC • Anticipate construction to start in
Slide 15: Key Takeaways
Key Takeaways Second Quarter 2016 Highlights Executing the growth plan and delivering on guidance – Dominion Operating earnings of $0.71 per share in the upper half of the second quarter guidance range* – Strong operating and safety performance in the second quarter – Greensville County Power statio
Slide 16: Second Quarter 2016
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