Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2018 Earnings Presentation
14 slides from Dominion Energy's earnings presentation, Aug 1, 2018
Slide 1: Second Quarter 2018 Earnings Call
Second Quarter 2018 Earnings Call August 1, 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 Second quarter 2018 versus guidance ($ per share) 2Q 2018 drivers versus guidance $0.86 $0.80 Operating expenses Weather $0.70 Tax expense/tax reform 2Q 2018 Actual guidance¹ operating EPS¹ ¹ See page 30 of the second quarter 2018 Earnings Release Kit for a reconciliation
Slide 4: Operating EBITDA summary
Operating EBITDA summary Second quarter 2018 versus guidance ($ millions) Guidance range Operating segment (midpoint) Actual¹ $390—$425 Power Delivery $410 ($408) $570—$620 Power Generation $639 ($595) $525—$555 Gas Infrastructure $534 ($540) ¹ See page 34 of the second quarter 2018 Earnings Release
Slide 5: Dominion Energy Midstream Partners earnings and distributions
Dominion Energy Midstream Partners (DM) Second quarter 2018 earnings and distributions – Financial results in line with management expectations • Adjusted EBITDA: $76.3 million¹ – Compared to $68.6 million in 2Q 2017 • Distributable cash flow: $49.3 million¹ – 21% increase over 2Q 2017 – Distributio
Slide 6: Financing and related activities
Financing and related activities – Cove Point debt financing in syndication • $3 billion, three-year, non-amortizing term loan • Expect to close next month • Proceeds used to pay down parent-level debt – Non-core asset sale process ongoing • Evaluating indications from a number of interested parties
Slide 7: Operating earnings guidance
Operating earnings guidance Third quarter 2018 ($ per share) 3Q 2018 earnings growth drivers $1.15 Cove Point export $1.04 $0.95 Tax expense/tax reform Weather Solar investment tax credits Higher financing/share count Affirm annual guidance 3Q 2017 3Q18 $3.80—$4.25 EPS¹ guidance¹ ¹ See page 36 and 3
Slide 8: Financial summary
Financial summary – Second quarter 2018 operating earnings: $0.86 per share¹ • Exceeds top of guidance range – 2018 operating earnings guidance range of $3.80 – $4.25 per share¹ • Expect to achieve upper half of annual earnings guidance range – 2017 to 2020 operating earnings per share CAGR of 6%—8%
Slide 9: Safety and operating performance
Safety and operating performance – Strong safety performance continued throughout second quarter – Record-setting nuclear operations • 660 days and counting without an unplanned reactor shutdown – Strong electric sales growth • First half of 2018: Weather normalized sales growth of 2.25% • Over 400M
Slide 10: Growth project update: Greensville
Growth project update Power Generation – Greensville Construction is on-time & on-budget – 1,588 MW gas-fired combined cycle plant • Will be the largest, most efficient single combined-cycle plant in the U.S. Charlottesville Richmond • Located in Greensville County, VA – Estimated cost of $1.3 billi
Slide 11: Growth project update: Atlantic Coast Pipeline and Supply Header
Growth project update Gas Infrastructure – Atlantic Coast Pipeline and Supply Header – Construction progress DOMINION ENERGY OWNERSHIP1: • Mainline construction in Atlantic Coast Pipeline Supply Header 48% 100% WV and NC • Compressor stations in PA, WV, and NC – Awaiting final VA E&S permit ACP • Wi
Slide 12: Regulatory matters
Regulatory matters – Connecticut procurement for zero-carbon resources • Final RFP provides timeline for bid process • Millstone has petitioned for “at risk” designation – FERC clarification on income tax recovery for MLPs • Negotiated contracts unaffected (e.g., Cove Point Liquefaction, ACP) • Domi
Slide 13: Merger with SCANA
Merger with SCANA – Agreement announced on January 3, 2018 • 0.669 exchange ratio • $1.3 billion customer payments $1,000 for average residential customer • Immediate bill reduction – Key approvals obtained • SCANA shareholders • Georgia • FERC • FTC clearance – Next steps • South Carolina and Nor
Slide 14: Key Takeaways
Key Takeaways Second quarter 2018 earnings and operational highlights Continued excellence in operating and safety performance Greensville County project is on-time and on-budget Construction underway on Atlantic Coast Pipeline and Supply Header Cove Point Liquefaction commercial in-service