Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q4 2016 Earnings Presentation
19 slides from Dominion Energy's earnings presentation, Feb 1, 2017
Slide 1: Fourth Quarter 2016 Earnings Call
Fourth Quarter 2016 Earnings Call February 1, 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 and Dominion Midstream. The statements relate to, among other things, expectations, estimates and projections concer
Slide 3: Operating Earnings Summary
Operating Earnings Summary 2016 Actual Versus Guidance EPS in-line with fourth quarter and full year guidance $4.00 $3.80 $3.60 $1.05 $0.99 $0.90 4th Qtr Guidance 4th Qtr Actual 2016 Guidance 2016 Actual Range Operating EPS* Range Operating EPS* *See page 29 of the fourth quarter 2016 Earnings Relea
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary Fourth Quarter 2016 Versus Guidance (in $millions) Operating Guidance Actual Drivers Segment EBITDA EBITDA Dominion Virginia $390 - $425 $402 Weather Power Dominion Lower operating expenses $595 - $665 $633 Generation Weather Dominion Energy $535 - $565 $546 *See page 35 of
Slide 5: Dominion Midstream Partners Fourth Quarter 2016 Earnings and Distribution
Dominion Midstream Partners (DM) Fourth Quarter 2016 Earnings and Distribution – Financial results in line with management expectations • Net Income $36.5 million • Adjusted EBITDA $45.8 million*- a 94% increase over 4Q 2015 • Distributable Cash Flow $37.7 million* - a 63% increase over 4Q 2015 – Di
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities Fourth Quarter 2016 – Cash flow & liquidity • $4.1 billion in cash from operating activities through 4Q 2016 • $5.5 billion of credit facilities • $2.4 billion of liquidity – Recent significant public financing activities • VEPCO $900 million senior notes issuance
Slide 7: Long-term Financing Activities
Long-term Financing Activities 2017 Financing Plan ($ millions) Entity Financing Plan DRI DRIP Equity $300 DRI Debt 1 $2,000 - $2,300 DRI 2014 MC Jr Debt Remarketing 2 $1,000 VEPCO Debt $1,400 - $1,700 DGH Debt $0 QGC Debt $75-$125 DM Debt/Equity $0 Total $4,775 - $5,425 Dominion Resources, Inc. (DR
Slide 8: Tax Reform
Tax Reform Key Tax Reform Considerations – Dominion’s Profile Diverse Business Profile – TaxKeyReform Tax Reform Uncertainties • Regulated Electric Utility • Lower tax rate FERC formula transmission rates Riders • Day one expensing Base rates under Biennial Review • Regulated Gas Utility • Int
Slide 9: Operating Earnings Guidance
Operating Earnings Guidance Full Year 2017 $3.90 2017 Earnings Growth Drivers $3.80 Millstone NEPOOL Power Prices $3.40 Millstone 2nd Refueling Outage Solar Tax Credits Step Down 2016 FY 2017 FY EPS* Guidance* *See page 33 and 37 of the fourth quarter 2016 Earnings Release Kit for a reconciliation t
Slide 10: Earnings Growth Drivers 2018 vs. 2017
Earnings Growth Drivers 2018 vs. 2017 2018 Earnings Growth Drivers Cove Point export Millstone refueling outage Solar Investment Tax Credits 2018 drivers support at least 10% year-over- year earnings growth Please refer to page 2 for risks and uncertainties related to projections and forward looking
Slide 11: Earnings Growth Drivers 2019 and Beyond
Earnings Growth Drivers 2019 and Beyond – VEPCO VEPCO – Merchant Merchant Generation Generation • Annual electric transmission spend – • Rising NEPOOL power prices $750 million • Legislation in Northeast • VA sales growth – military spending • Completion of Greensville County – Gas Infrastructure Ga
Slide 12: Financial Guidance Summary
Financial Guidance Summary – 2016 operating earnings – $3.80 per share* – 2017 operating earnings guidance range – $3.40 - $3.90 per share* – Operating EPS to grow by at least 10% in 2018 over 2017 – Operating EPS CAGR 2017 – 2020 will be in the 6-8% range – Anticipated dividend growth rate from 201
Slide 13: Dominion Generation 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 • All three gas turbines have be
Slide 14: Dominion Generation Growth Project Update – Solar
Dominion Generation Growth Project Update – Solar – Focus on Virginia and North Carolina solar demand: Expected In- Project State Capacity service Eastern Shore Solar Accomack County, VA 80 MW 4Q 2016 Scott, Whitehouse, Woodland Solar Powhatan, Louisa and Isle of Wight, VA 56 MW 4Q 2016 Summit F
Slide 15: Cove Point Liquefaction Growth Project Update
Dominion Energy Growth Project Update – Cove Point Liquefaction Construction is On-time & On-budget – Engineering and procurement are essentially complete – Completed setting all major equipment in December – Commissioning is underway for electrical, compressed air, and water treatment Project is ~8
Slide 16: Atlantic Coast Pipeline and DTI Supply Header
Dominion Energy Atlantic Coast Pipeline and DTI Supply Header ACP OWNERSHIP STRUCTURE: – Received FERC Draft EIS Dominion Resources* 48% Duke Energy 47% December 30 Southern Company 5% – Expect Final EIS June 2017 SUPPLY HEADER OWNERSHIP: Dominion Resources* 100% – Anticipate construction to start i
Slide 17: Gas Infrastructure Growth
Dominion Energy Gas Infrastructure Growth Primarily demand-driven projects moving gas to end-use customers – Cove Point Liquefaction – Atlantic Coast Pipeline / Supply 2016 Highlights Header Record of 6 major pipeline expansion projects placed in – Market Access Projects service – Producer Outlet Pr
Slide 18: Key Takeaways
Key Takeaways 2016 Earnings and Operational Highlights Executing the growth plan and delivering on guidance – Dominion Operating earnings of $3.80 per share in the middle of full year guidance range* – Strong operating and safety performance in 2016 – Greensville County project on-time and on-budget
Slide 19: Fourth Quarter 2016
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