Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q1 2021 Earnings Presentation
25 slides from Dominion Energy's earnings presentation, May 4, 2021
Slide 1: Q1 2021 earnings call
Q1 2021 earnings call May 4, 2021
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: Remembering Tom Farrell
Remembering Tom Farrell A legacy of leadership
Slide 4: Compelling investment proposition
Compelling investment proposition Comprehensive total shareholder return Industry-leading 6.5% ~3.2% ~10% ESG EPS growth rate dividend shareholder through 2025 yield return profile $32B 6% Industry’s largest 5-year growth regulated capital plan annual dividend Pure-play growth state-regulated decarb
Slide 5: Compelling investment proposition: decarbonization initiatives extend beyond 5-year plan
Compelling investment proposition Decarbonization initiatives extend beyond 5-year plan; benefits customers, communities, environment 2020 – 2035 total opportunity Gas 2020 – 2025 portion of total opportunity distribution modernization Electric grid / RNG Nuclear transformation Up to $9B ~$72B life
Slide 6: Operating earnings per share
Operating earnings per share Q1 2021: Actual versus guidance ($ per share) $1.15 $1.09 $1.10 21 Unfavorable weather consecutive $1.00 impact on utility earnings: quarters ($0.01) of delivering weather-normal quarterly results that meet or exceed quarterly guidance midpoint Actual¹ Weather normal² Gu
Slide 7: Guidance
Guidance Operating earnings and dividends per share Earnings Dividends $0.70—$0.80 ▲ Absence of Millstone outage ($0.05) Q2 2021 ▲ Normal weather ($0.03) Target payout 65% (YoY drivers) ▲ 2020 share repurchase ratio (no change) ▲ Regulated growth ▼ COVID deferred O&M ▼ Financing/taxes/D&A/capacity e
Slide 8: 2021 long-term debt issuance plan
2021 long-term debt issuance plan $ billions¹ Issuance guidance range Issued YTD Remaining Dominion Energy Virginia $0.7—$1.0 $0 $0.7—$1.0 Gas Distribution $0.3—$0.5 $0.15 $0.15—$0.35 Dominion Energy South Carolina $0.4—$0.6 $0 $0.4—$0.6 Contracted Assets $0 $0 $0 DEI $3.0—$3.5 $1.1 $1.9—$2.4 Total
Slide 9: Safety—OSHA recordable incident rate
Employees Safety—OSHA recordable incident rate¹ 2.05 1.78 100 employees each work year Number of recordables per 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 0.41 0.44 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2019 2021 Industry average² ¹ Pro
Slide 10: Coastal Virginia Offshore Wind (CVOW): 2.6GW initial deployment
Coastal Virginia Offshore Wind (CVOW): 2.6GW initial deployment Update Q4 2020 FAST 41 Milestone guidance published target Construction & Operation Plan submitted ✓ Dec. 2020 ✓ Dec. 2020 Notice of Intent (NOI) issued by BOEM Mid-2021 June 2021 Record of Decision published by BOEM Mid-2023 June 2023
Slide 11: Select emissions-reduction programs
Select emissions-reduction programs Updates Nuclear Gas Solar DESC life extension Distribution ✓ CE-1 approval ✓ Surry ✓ H2 blending ✓ Modified IRP ▪ 4th consecutive solar ▪ 20-year life extension ▪ Filed for second gas ▪ ORS: “Sufficiently met filing approval ▪ 45% of VA zero-carbon distribution bl
Slide 12: Dominion Energy Virginia: Triennial review filing
Dominion Energy Virginia Triennial review filing ▪ Dominion Energy Virginia provides exceptionally reliable and affordable service under a vertically- integrated regulated model that prioritizes long-term planning and protects customers from service disruptions and bill shocks ▪ Over the four-year r
Slide 13: Summary
Summary ✓ Safety performance tracking closely to last year’s record-setting performance ✓ 21st consecutive quarter of weather-normal earnings at or above guidance midpoint ✓ Affirmed existing earnings and dividend growth guidance ✓ Executing across the largest regulated decarbonization investment op
Slide 14: Appendix
Appendix 14 83 \\\y
Slide 15: Purpose-driven
Purpose-driven Comprehensive stakeholder approach Dominion Energy is driven by our belief that the best companies seek to: ✓ Consider the interests of all stakeholders as critical to success including employees, customers & communities and investors ✓ Adopt ambitious Investors climate goals that dri
Slide 16: Environment: investing in support of our clean-energy profile
Environment Investing in support of our clean-energy profile Five-year growth capital (2021—2025) ~$32B $10B/43% vs. prior five-year (2019-2023) growth capex plan¹ Zero-carbon generation & energy storage ▪ Offshore wind ~82% $17B / 52% ▪ Solar ▪ Energy storage ▪ Nuclear relicensing Emissions reduct
Slide 17: Environment: material emissions reductions
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 37% ~55%↓ 45% ~70%— ~69% ~99% 7% 80%↓ Net zero zero & (conforms to 1.5o low Paris Accord emitting 45% Goals) 52
Slide 18: Dominion Energy Virginia: Triennial review filing
Dominion Energy Virginia Triennial review filing “T1” parameters As filed Applicable period 4 years (2017—2020) ~$9 billion Applicable rate base ▪ ~37% of DEV 2020YE¹ ▪ ~18% of DE 2020YE² DEV “rider” investments Outside scope of earnings review Allowed ROE 9.2% (9.9% inclusive of 70 bps collar) ▪ 10
Slide 19: Operating segments
Operating segments Summary¹ State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT UT VA H ID W States of operation Y WV SC CA Southeastern UT & Mid- NC UT Atlantic U.S. NC 2021 operating ~57% ~17% ~13% ~12% earnings contrib
Slide 20: Customers
Customers State-regulated utilities Segment summary as of 3/31/2021 State summary DE Three months ended South Carolina Customers Gas Distribution March 31 1.2M 3/31/2021 (M) 3.1M ‘19-’21 CAGR 17% 44% DE Virginia 1.3% 2.7 DE South Carolina 2.4% 1.2 Electric 1.9% 0.8 6.9M Gas 3.3% 0.4 state utility cu
Slide 21: Weather: degree days
Weather Degree days Quarter ended 3/31 2021 2020 Actual 1,889 1,518 Heating Normal 1,970 1,990 Dominion Energy Virginia Actual 11 14 Cooling Electric Normal 5 5 Actual 786 578 Heating Dominion Energy South Normal 779 801 Carolina Actual 1 5 Cooling Normal 0 0 Actual 786 578 SC Normal 779 801 Actual
Slide 22: Weather: after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2021 QTD Dominion Energy Virginia2 ($10) – – – ($10) Versus normal¹ Dominion Energy South 4 – – – 4 Carolina3 Gas Distribution4 (1) – – – (1) Total ($8) – – – ($8) Q1 Q2 Q3 Q4 2021 QTD Dominion Energy Virginia2 $6 – – – $6 Versus prior year¹ Dominion Energy
Slide 23: Operating earnings per share: track-record of successful execution
Operating earnings per share Track-record of successful execution Weather normalized operating EPS vs. guidance Upper end guidance Guidance midpoint Lower end guidance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Over 5 years of delivering
Slide 24: 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 25: Fixed income: credit ratings (cont'd)
Fixed income Credit Ratings (cont’d) Dominion Energy Ohio Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Positive Stable DESC Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ First Mortgage Bonds A3 A A Short-Term/Commercial Paper P-2 A-2 F2