Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2017 Earnings Presentation
15 slides from Dominion Energy's earnings presentation, Aug 2, 2017
Slide 1: Second Quarter 2017 Earnings Call
Second Quarter 2017 Earnings Call August 2, 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 Energy and Dominion Energy Midstream Partners. The statements relate to, among other things, expectations, estimates
Slide 3: Operating Earnings Summary
Operating Earnings Summary Second Quarter 2017 Versus Guidance $0.70 Weather Norm.: $0.69 2nd Quarter Drivers Versus Guidance $0.67 $0.60 Lower operating expenses Lower income taxes Weather Guidance Actual Range Operating EPS* *See page 30 of the second quarter 2017 Earnings Release Kit for a reconc
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary Second Quarter 2017 Versus Guidance (in $millions) Operating Guidance Actual Drivers versus Guidance Segment EBITDA EBITDA Weather Power Delivery $400 - $440 $422 Lower operating expenses Weather Power Generation $535 - $585 $554 Lower operating expenses Transmission margins
Slide 5: Dominion Energy Midstream Partners (DM)
Dominion Energy Midstream Partners (DM) Second Quarter 2017 Earnings and Distribution – Financial results in line with management expectations • Net Income $42.0 million • Adjusted EBITDA $68.6 million*- ~2x increase over 2Q 2016 • Distributable Cash Flow $40.7 million* - ~70% increase over 2Q 2016
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities Second Quarter 2017 – Cash flow & liquidity* • $2.4 billion in cash from operating activities for first half of 2017 • $5.5 billion of credit facilities • $2.7 billion of liquidity at quarter end – Recent significant financing activities • DEI Mandatory Convertible
Slide 7: Long-term Financing Activities
Long-term Financing Activities 2017 Financing Plan ($ millions) Entity Financing Plan Completed DEI DRIP Equity $300 In progress DEI Debt 1 $2,000 - $2,300 Complete 2014 MC Jr Debt DEI $1,000 Complete Remarketing 2 VEPCO Debt $1,400 - $1,700 $750 DEGH Debt $0 - QGC Debt $75-$125 - DM Debt/Equity $0
Slide 8: Operating Earnings Guidance
Operating Earnings Guidance Third Quarter 2017 3rd Quarter Drivers Versus Last Year $1.15 $1.14 Addition of Questar Operations $0.95 Return to normal weather Cove Point import contract roll-off PJM electric capacity expenses Solar investment tax credits 3Q 2016 3Q 2017 EPS* Guidance* *See page 36 an
Slide 9: Financial Summary
Financial Summary – Second quarter operating earnings of $0.67 per share* • Near the top of guidance range of 60 to 70 cents – Third-quarter operating earnings guidance of $0.95-$1.15 per share* – 2017 operating earnings guidance range of $3.40 - $3.90 per share* – Operating EPS to grow by at least
Slide 10: Power Generation: Growth Project Update – Greensville
Power Generation Growth Project Update – Greensville The Greensville 3x1 CC will be the largest, most efficient single combined-cycle plant in the U.S. Charlottesville – 1,588 MW Gas Fired Combined Cycle plant Richmond in Greensville County, VA Greensville • 3-on-1 Combined Cycle • Duct burners, inl
Slide 11: Power Generation: Growth Project Update – Solar
Power Generation Growth Project Update – Solar Focus on Virginia and North Carolina solar demand Expected In- Project State Capacity service In-service in 2015/2016 VA/NC 216 MW Complete IS37 NC 79 MW 2Q 2017 Additional projects with VA 180 MW Late 2017 Amazon Remington Solar VA 20 MW Late 2017 O
Slide 12: Power Delivery: Growth Project Update
Power Delivery 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 opportunities tap li
Slide 13: Gas Infrastructure: Cove Point Liquefaction
Gas Infrastructure Growth Project Update – Cove Point Liquefaction Construction is On-time & On-budget – Engineering and procurement are essentially complete – Received FERC authorization for hydrocarbon entry into four additional project areas – Over 90% of the project’s systems are in commissionin
Slide 14: Atlantic Coast Pipeline and DETI Supply Header
Gas Infrastructure Atlantic Coast Pipeline and DETI Supply Header ACP OWNERSHIP STRUCTURE: – Received favorable FERC Dominion Energy* Duke Energy 48% 47% Supply Header receipt points Final Environmental Southern Company 5% Impact Statement SUPPLY HEADER OWNERSHIP: Dominion Energy* 100% – Expect to r
Slide 15: Key Takeaways
Key Takeaways Second Quarter 2017 Earnings and Operational Highlights Executing the growth plan and delivering on guidance – Dominion Energy operating earnings of $0.67 per share within the second quarter guidance range* – Strong operating and safety performance in second quarter 2017 – Greensville