Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q4 2017 Earnings Presentation
17 slides from Dominion Energy's earnings presentation, Jan 29, 2018
Slide 1: Fourth Quarter 2017 Earnings Call
Fourth Quarter 2017 Earnings Call January 29, 2018
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 2017 actual versus guidance In‐line with fourth quarter and full year guidance $3.90 $3.60 $3.40 $1.00 $0.91 $0.80 4th Qtr Guidance 4th Qtr Actual 2017 Guidance 2017 Actual Range Operating EPS¹ Range Operating EPS¹ ¹ See page 29 of the fourth quarter 2017 Earnings Release
Slide 4: Operating EBITDA Summary: Fourth Quarter 2017 versus Guidance
Operating EBITDA Summary Fourth quarter 2017 versus guidance ($ millions) Operating 4th quarter segment Guidance range Actual¹ drivers versus guidance Transmission growth Power Delivery $415—$465 $446 Operating expenses Power Generation $505—$570 $556 Operating expenses Operating margins Gas Infrast
Slide 5: Operating EBITDA Summary: 2017 versus Guidance
Operating EBITDA Summary 2017 versus guidance ($ millions) Operating Full year segment Guidance range Actual¹ drivers versus guidance Transmission growth Power Delivery $1,685—$1,795 $1,723 Weather Capacity expense Power Generation $2,625—$2,795 $2,670 Weather Operating margins Gas Infrastructure $1
Slide 6: Dominion Energy Midstream Partners 2017 Earnings and Distributions
Dominion Energy Midstream Partners (DM) 2017 earnings and distributions – Financial results in line with management expectations • Net Income $195.1 million – ~83% increase over 2016 • Adjusted EBITDA $298.8 million¹— ~138% increase over 2016 • Distributable Cash Flow $178.2 million¹— ~68% increase
Slide 7: Cash Flow and Financing Activities
Cash Flow and Financing Activities – Cash flow & liquidity¹ • $4.6 billion in cash from operating activities through year‐end • $5.5 billion of credit facilities • $2.2 billion of liquidity at year‐end ¹ See pages 22—25 of the fourth quarter 2017 Earnings Release Kit for additional finance and liqui
Slide 8: Credit-Focused Initiatives
Credit‐Focused Initiatives – Equity • $500 million at‐the‐market (ATM) issuance; completed in January • $300 million dividend reinvestment program (DRIP) – Capital reductions • $1 billion of capital investment reduction during 2018—2019 No impact on growth capital guidance – Liquidity • Increasing
Slide 9: 2018 External Financing Activities
2018 External Financing Activities Excluding SCANA transaction¹ ($ millions) Planned Issuer financings Status ATM: $500M Completed in January DEI DRIP: $300M To come Long‐term debt: $1,000—$1,500 To come VEPCO $1,100—$1,400 To come DEGH $400—$600 To come QGC $150 Priced Sept 2017 (Private placement)
Slide 10: Tax Reform
Tax Reform Initial 2018 guidance – State regulated businesses • Assume benefits of lower tax rates are passed‐through to customers in all our state regulated businesses – Positive • Improves profitability of non‐regulated and long‐term contracted businesses • Incremental rate base growth in regulate
Slide 11: Operating Earnings Guidance: 2018 Full-Year
Operating Earnings Guidance 2018 full‐year ($ per share) $4.25 2018 earnings growth drivers $3.80 Cove Point $3.60 Weather Millstone refueling outage Tax reform Solar investment tax credits 2018 midpoint is 10% higher than 2017 2018 midpoint of 2017 guidance EPS¹ Guidance¹ ¹ See pages 29 and 37 of t
Slide 12: Operating Earnings Guidance: 1Q 2018
Operating Earnings Guidance 1Q 2018 ($ per share) 1Q 2018 earnings growth drivers $1.15 Weather $0.97 $0.95 Cove Point Merchant generation margins Tax reform Solar investment tax credits Higher financing costs 1Q 2017 EPS¹ 1Q 2018 Guidance¹ ¹ See page 30 of the first quarter 2017 Earnings Release Ki
Slide 13: Financial Summary
Financial Summary Dominion Energy and Dominion Energy Midstream Partners – 2017 operating earnings: $3.60 per share¹ – Corporate tax reform a 2018 net positive for earnings – Undertaking credit‐focused initiatives – 2018 operating earnings guidance range of $3.80—$4.25 per share¹ • 10% higher than t
Slide 14: Power Generation: Greensville Growth Project Update
Power Generation Growth project update – Greensville Construction is on‐time & on‐budget – 1,588 MW Gas Fired Combined Cycle plant in Greensville County, VA • Will be the largest, most efficient single combined‐cycle plant Charlottesville in the U.S. Richmond • 3‐on‐1 configuration; Duct burners, in
Slide 15: Gas Infrastructure: Cove Point Liquefaction Update
Gas Infrastructure Growth project update – Cove Point Liquefaction Construction is complete – DOE approved exporting of commissioning cargoes – Feed gas introduced – Cooling down in process to make LNG – Final tuning and testing phase – Expect in‐service early March Final stages of commissioning Hea
Slide 16: Gas Infrastructure: Atlantic Coast Pipeline and Supply Header
Gas Infrastructure Growth project update – Atlantic Coast Pipeline and Supply Header ACP OWNERSHIP STRUCTURE: – Limited Notice to Proceed Dominion Energy¹ Duke Energy 48% 47% approved by FERC; tree‐felling Southern Company 5% currently underway SUPPLY HEADER OWNERSHIP: Dominion Energy¹ 100% – Additi
Slide 17: Key Takeaways
Key Takeaways 2017 earnings and operational highlights – Record operating and safety performance in 2017 – Greensville County project is on‐time and on‐budget – Cove Point construction complete; final stages of commissioning – ACP tree‐felling has commenced – Earnings growth of at least 10% in 2018,