Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q4 2023 Earnings Presentation
33 slides from Dominion Energy's earnings presentation, Feb 22, 2024
Slide 1: Q4 2023 earnings call
Q4 2023 earnings call February 22, 2024
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: Safety is our first core value
Safety is our first core value Employee OSHA recordable incident rate¹ 100 employees each work year 1.78 Number of recordables per 1.70 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 0.45 0.41 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 4: Reliable, affordable, increasingly clean energy
Our mission is to provide the reliable, affordable, and increasingly clean energy that powers our customers every day ✓ Reliable ✓ Affordable ✓ Increasingly clean SAIDI¹ Residential electric customer rate (cents per kWh)² Electric emissions MMT (CO2)³ 23.1 19.8 134 (10%) 128 (17%) 16.2 16.2 57.4 (13
Slide 5: Dominion Energy Virginia: regulated offshore wind on time and on budget
Dominion Energy Virginia Regulated offshore wind: On time and on budget (no change) ✓ Commence monopile installation: Late Q2 2024 (no change) Timeline ✓ Expected construction completion: End of 2026 (no change) ✓ January: Received BOEM final approval of CVOW's Construction and Operations Plan (upda
Slide 6: Regulated offshore wind: LCOE and costs
Dominion Energy Virginia Regulated offshore wind: On time and on budget (no change) ▪ LCOE (no change)¹: $77/MWh³ compared to previous range of $80 to $90/MWh at initial filing submission ▪ Legislative prudency cap (no change): $125/MWh4 LCOE sensitivity table LCOE impact to $77/MWh Assumption¹ (+/-
Slide 7: CVOW video update from key suppliers and partners
Dominion Energy Virginia Regulated offshore wind: CVOW video update from key suppliers and partners Jochen Eickholt Robert Dreves Søren Schlott Steen Brødbæk CEO, Siemens CEO Rostock Mikkelsen CEO, Semco Maritime Gamesa Renewable Facility, EEW COO, Bladt Industries Energy Luc Vandenbulcke Hakan Ozme
Slide 8: Regulated offshore wind: Charybdis installation vessel
Dominion Energy Virginia Regulated offshore wind: On time and on budget (no change) ▪ Completion status (updated): 82% compared to previous update of 77% ▪ Expected completion date (no change): Late 2024/early 2025 ▪ Supportive of CVOW schedule inclusive of any 3rd party charter agreements in 2025 (
Slide 9: Agreement to sell 50% noncontrolling interest in CVOW
Dominion Energy Business review update: Announced agreement to sell 50% noncontrolling interest in CVOW Transaction consistent with the previously outlined commitments & priorities of the business review ✓ Competitive process attracted high-quality interest resulting in a compelling partner ▪ Stonep
Slide 10: Illustrative funding at select project costs
Dominion Energy Business review update: Announced agreement to sell 50% noncontrolling interest in CVOW Illustrative examples at select project costs: Assumes partner funds beyond mandatory capital calls ($11.3B+) Construction budget: $9.8B $10.3B $10.8B $11.3B $11.8B $12.7B $13.7B DEV cumulative fu
Slide 11: CVOW sale purchase price
Dominion Energy Business review update: Announced agreement to sell 50% noncontrolling interest in CVOW Purchase price A▪ At closing, Stonepeak will Final construction cost: $9.8B $10.3B $11.3B make a cash payment to 50% of est. project costs at closing (YE 2024) $3.0B $3.0B $3.0B Dominion Energy to
Slide 12: Transaction achieves key objectives
Dominion Energy Business review update: Announced agreement to sell 50% noncontrolling interest in CVOW Transaction achieves key objectives ✓ Attractive, well-capitalized, and high-quality partner ✓ Robust cost sharing reduces risk and provides meaningful protection from any unforeseen cost increase
Slide 13: Business review update: selected updates
Dominion Energy Business review update: Selected updates ✓ Gas utilities sales: All three transactions are on track to close in 2024 ▪ Moving methodically towards regulatory approvals and closings Sales of ▪ No change to original expectations Gas LDCs ▪ Estimated after-tax proceeds of ~$9B – 100% to
Slide 14: No change to business review commitments and priorities
Dominion Energy Business review update: Selected updates No change to original business review commitments and priorities¹ ▪ Durable, high-quality, and predictable long-term earning growth profile + consistent execution (no change) ▪ Premier state-regulated utility profile + competitive and fair ret
Slide 15: Business review update: next steps
Dominion Energy Business review update: Next steps Review moving towards completion ▪ Offshore wind partnership process is the final strategic step of the business review ▪ Will host an investor event on March 1, 2024 ▪ Will include a comprehensive strategic and financial update and question-and-ans
Slide 16: 2023 operating earnings per share (non-GAAP)
Dominion Energy 2023 operating earnings per share (non-GAAP) ~$2.90 ~$2.85 ~$0.85 ~($0.80) ~$2.10 $0.01 $1.99 ($0.07) ($0.05) Adoption of the Adjustments deferral method ▼ Weather ($0.02) ▲ Historically mild weather +$0.18 (updated for Q4) combined with ▲ Interest savings from announced asset sales
Slide 17: 2025E operating earnings per share (non-GAAP)
Dominion Energy 2025E operating earnings per share (non-GAAP) (no change) ▪ 2025 will be the foundational year for post-review financial performance given transitional nature of 2023/2024 ▪ As part of the upcoming investor meeting, we will provide a comprehensive post-review financial outlook that r
Slide 18: Investment tax credit update: accounting methodology change
Dominion Energy Investment tax credit (ITC) update: Accounting methodology change ▪ We have previously indicated that we will no longer pursue unregulated solar investments for the purpose of generating operating earnings from tax credits. This commitment is unchanged ▪ As part of the business revie
Slide 19: Retirement benefit plans update
Dominion Energy Retirement benefit plans update: Evaluating plan asset rebalancing ▪ Robust plan funding levels: 117% at year-end 2023 Expected return on asset (EROA) assumption ▪ Dominion Energy is evaluating reducing retirement benefit plan risk by rebalancing asset allocation towards lower risk a
Slide 20: Summary
Dominion Energy Summary ✓ Annual safety performance was 2nd best in our company’s history ✓ We continue to make the necessary investments to provide the reliable, affordable, and increasingly clean energy that powers our customers every day ✓ Offshore wind project is on time and on budget ✓ Signific
Slide 21: Appendix
Appendix 21 83 \\\y
Slide 22: Business review (no changes)
Dominion Energy Business review (no changes) Commitments Priorities ▪ Premier state-regulated utility profile ▪ Durable, high-quality, and predictable long-term earnings growth profile + consistent execution ▪ Industry-leading regulated investment opportunity focused on decarbonization ▪ Competitive
Slide 23: Pro rata cost and risk sharing at illustrative project cost levels
Dominion Energy Business review update: Announced agreement to sell 50% noncontrolling interest in CVOW Pro rata cost and risk sharing at illustrative project cost levels Construction Regulatory CVOW partnership DEV funding of DEV ownership of Partner funding of Partner ownership of budget recovery¹
Slide 24: Regulated offshore wind: approved settlement cost-sharing
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% DEV, Office of Attorney General, Walmart, $9.8B – $10.3B 100% 0% Sierra Club, and Appalachian Voices filed a $10.3B – $11.
Slide 25: Best-in-class O&M control
Best-in-class O&M control Electric non-fuel O&M per sales ($/MWh) $200 Top quartile D¹ Peer² $/MWh Electric non-fuel O&M Lower is better $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 D Ranking: 3rd 3rd 2nd 2nd 1st 2nd 2nd 2nd 2nd 2nd Note: Source of data is FERC Form 1 for respective annual p
Slide 26: Regulated electric sales growth
Regulated electric sales growth DEV and DESC combined 2023 weather normal sales growth¹ Regulated electric sales trends Residential Commercial Industrial Govt/Other Total ✓ Robust commercial load growth driven by Data Centers 8.8% 2.5% ✓ Attractive customer growth across our Virginia and 0.1% South
Slide 27: Customers
Customers State-regulated utilities Segment summary Q4 2023 State summary Three months ended Average December 31 Customers DE ‘21-‘23 CAGR Q4 2023 (M) South Carolina 1.2M DE Virginia 1.0% 2.8 31% DE South Carolina 2.2% 1.2 Electric 1.5% 0.8 4.0M state utility Gas 3.6% 0.4 customers¹ Total utility cu
Slide 28: Electric weather degree days
Weather Degree days Quarter ended 12/31 Twelve months ended 12/31 2023 2022 2023 2022 Actual 1,153 1,346 2,830 3,555 Heating Normal 1,263 1,259 3,453 3,529 Dominion Energy Virginia Actual 58 30 1,643 1,765 Cooling Electric Normal 58 65 1,798 1,783 Actual 434 512 917 1,294 Heating Dominion Energy Sou
Slide 29: Weather after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($64) ($51) $14 ($21) ($122) Versus normal¹ Dominion Energy South (15) (20) 3 2 (30) Carolina3 Total ($79) ($71) $17 ($19) ($152) Q1 Q2 Q3 Q4 2023 YTD ($67) ($42) $3 ($20) ($126) Versus prior year¹ Dominion Energy Virginia
Slide 30: Fixed income: credit ratings
Fixed income Credit ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 31: Fixed income: schedule of long-term debt
Fixed income Preliminary and unaudited schedule of long-term debt as of December 31, 2023 ($M) Segment Financing Entity Description Maturity Weighted Avg. Coupon Short-term at 12/31/2023 Long-term at 12/31/2023 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2024-2053 4.25% $350 $16,585 DE Vir
Slide 32: Fixed income: debt maturities
Fixed income Schedule of debt maturities as of December 31, 2023 ($M) Financing Segment Due Date Entity DE Virginia DE SC Con Energy Corp & Other Total 2024 364-Day Term Loan (variable) 1/12/2024¹ DEI - - - 2,500 2,500 3.45% 2014 Series A Senior Notes 02/15/24 VEPCO 350 - - - 350 3.496% 2017 Series
Slide 33: Fixed income: debt maturities (continued)
Fixed income Schedule of debt maturities as of December 31, 2023 ($M) Financing Segment Due Date Entity DE Virginia DE SC Con Energy Corp & Other Total 2027 3.60% 2020 Series B Senior Notes 03/15/27 DEI - - - 350 350 3.50% 2017 Series A Senior Notes 03/15/27 VEPCO 750 - - - 750 3.75% 2022 Series B S