Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2024 Earnings Presentation
32 slides from Dominion Energy's earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 earnings call
Q2 2024 earnings call August 1, 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: Operating earnings per share
Operating earnings per share Q2 2024: Actual ($ per share) $0.65 $0.62 Q2 2024 (YoY key drivers) Favorable weather impact on ▲ Weather +11 cents³ utility earnings: $0.03 ▲ Regulated investment +10 cents ▲ Lack of Millstone outages +13 cents4 ▲ Millstone margins +4 cents ▼ Rider revenue reduction (8
Slide 4: Financial guidance reaffirmed
Financial guidance reaffirmed Operating earnings per share and long-term financial guidance (no changes) $3.54 $3.40 midpoint $2.87 $3.25 5%—7% annual operating $2.75 midpoint EPS growth rate through $2.62 2025 guidance range includes 2029 off 2025 operating ~10 cents/share of RNG 45Z EPS midpoint c
Slide 5: Significant improvement to our credit profile
Significant improvement to our credit profile 100% of after-tax proceeds will be used to reduce parent-level debt; pending transactions subject to regulatory approvals ($B) Status After-tax proceeds Debt transferred² Total debt reduction Est. closing Cove Point LNG¹ ✓ Completed $3.3 – $3.3 Closed De
Slide 6: 2024 financing activities
2024 financing activities Expected fixed income activities¹ ($B) Issuance range Issued YTD Remaining Dominion Energy Virginia $2.0—$2.5 $1.0 $1.0—$1.5 Dominion Energy South Carolina — — — Contracted Energy — — — DEI hybrid (updated) 0.7—2.0 2.0 — Consolidated $2.7—$4.5 $3.0 $1.0—$1.5 Expected common
Slide 7: Employee safety
Dominion Energy Employee safety OSHA recordable incident rate¹ ~78% safer than industry average 100 employees each work year Number of recordables per 1.78 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 0.41 0.45 0.38 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 8: Regulated offshore wind: Tracking monopile installation progress
Dominion Energy Virginia Regulated offshore wind: Tracking monopile installation progress Installed 2 monopiles each day on July 21 and July 28 Installation status as of July 31st Monopiles installed: 42 Monopiles installed in last 15 days: 11 Monopiles installed in last 30 days: 22 Start-up phase:
Slide 9: Regulated offshore wind: Achieving key milestones with monopile installation
Dominion Energy Virginia Regulated offshore wind: Achieving key milestones with monopile installation Note: M/V ORION (right) installing monopiles in CVOW’s lease area. Supporting the monopile installation, among other vessels, is the M/V ATLANTIC OCEANTIC (left), providing double big bubble curtain
Slide 10: Regulated offshore wind: On time and on budget
Dominion Energy Virginia Regulated offshore wind: On time and on budget (no change) ✓ Commenced monopile installation: May 2024 (no change) Timeline ✓ Expected construction completion: End of 2026 (no change) Permitting ✓ All federal permits received (no change) ✓ Received 72 monopiles from EEW at t
Slide 11: Regulated offshore wind: On time and on budget (costs and LCOE)
Dominion Energy Virginia Regulated offshore wind: On time and on budget (no change) ▪ LCOE (no change)¹: $73/MWh compared to initial filing submission of $80 to $90/MWh ▪ Legislative prudency cap (no change): $125/MWh² LCOE sensitivity table LCOE impact to $73/MWh Assumption¹ (+/-) $100M of capital
Slide 12: Regulated offshore wind: Continues to achieve project milestones
Dominion Energy Virginia Regulated offshore wind: Continues to achieve project milestones Last turbine installed / First project COD 100% turbine 33% installed complete (updated) First 75% transition piece Last transition installed piece installed First monopile ROD Last monopile 50% installed¹ Firs
Slide 13: Charybdis: Achieves major milestones
Charybdis (Jones Act compliant installation vessel) Achieves major milestones: Helideck and crane boom successfully installed Aerial view of helideck and crane boom installation Side view of crane boom 13
Slide 14: Charybdis: Continues to achieve project milestones
Charybdis (Jones Act compliant installation vessel) Continues to achieve project milestones ▪ Completion status (updated): 89% compared to previous update of 85% ▪ Expected completion date (no change): Late 2024/early 2025 ▪ Supportive of CVOW schedule (no change) ▪ Seatrium (no change) ▪ Extensive
Slide 15: Dominion Energy South Carolina: Selected business updates
Dominion Energy South Carolina Selected business updates ✓ Submitted comprehensive settlement agreement for approval by the Public Service Commission of South Carolina ▪ Includes all parties signing on or not opposing ▪ If approved, new rates expected to be effective as of September 1, 2024 ▪ Compar
Slide 16: Dominion Energy Virginia: Selected business updates
Dominion Energy Virginia Selected business updates ✓ Ramping into substantial and growing multi-decade utility investment ▪ Virginia named America’s Top State for Business in 2024¹ ▪ Continue to expect FY2024 DEV weather normal sales growth rate of 4.5%—5.5% ▪ In July, registered six new all-time pe
Slide 17: 2024 PJM DOM Zone forecasts
Dominion Energy Virginia 2024 PJM DOM Zone forecasts DOM Zone peak demand forecasts PJM DOM Zone summer peak 10-year Updated average annual load growth rates: 34,000 Six new all-time 5.5% peak demand 32,000 records in July 5.0% Previous New all-time 30,000 summer peak Previous winter peak Jul. 16, 2
Slide 18: Data center rate design and cost recovery
Dominion Energy Virginia Data center rate design and cost recovery Overview ✓ Routinely examine cost allocations and corresponding rate designs to ensure that they are fair and reasonable ✓ Distribution and generation rates reviewed by the SCC every two years during base rate reviews ✓ Transmission
Slide 19: Summary
Dominion Energy Summary ✓ Outstanding safety performance ✓ Reaffirmed all financial guidance from March 1 investor meeting ✓ Offshore wind project is on time and on budget ✓ Investing to provide the reliable, affordable, and increasingly clean energy that powers our customers every day ✓ 100% focuse
Slide 20: Appendix
Appendix 20
Slide 21: Investor relations schedule
Investor relations schedule Key events Dates Evercore ISI (Charybdis site visit) August 21—22 Barclays 38th Annual CEO Energy—Power Conference September 3—5 Wolfe Research Utilities, Midstream & Clean Energy Conference October 1—2 EEI Financial Conference November 10—12 RBC Capital Markets NDR (Aust
Slide 22: Operating earnings per share
Operating earnings per share FY 2024 guidance (no change) Drivers by remaining quarter (YoY) Illustrative quarterly distribution of 2024E EPS ▲ Sales ▲ Regulated investment ▲ Margins Q3 ▲ Interest expense 30—40% ▼ Return to normal weather ▼ DD&A/O&M/other 20—30% ▲ Return to normal weather 15—25% 15—
Slide 23: Northern Virginia leads the world in data center markets
Dominion Energy Virginia Northern Virginia leads the world in data center markets ▪ Connected 9 new data centers YTD and expect to connect 15 data centers total in 2024 ▪ Since 2013, averaged ~15 data center connections per year ▪ Individual data center demand growing from 30 MW to 60—90 MW ▪ Larger
Slide 24: Data center request process
Dominion Energy Virginia Data center request process Typical data center request process from contact to connection 1 1 High level 2 Engineering 3 Construction 4 Install 5 Electric Service assessment 2 Letter of Letter of infrastructure Agreement Authorization Authorization ▪ Identify infrastructure
Slide 25: Regulated electric sales growth
Regulated electric sales growth DEV and DESC combined LTM¹ Q2 ’24 YoY weather normal sales growth² Regulated electric sales trends Residential Commercial Industrial Govt/Other Total ✓ Robust commercial load growth driven by Data Centers 6.3% 2.1% 2.0% ✓ Attractive customer growth across our Virginia
Slide 26: Customers
Customers State-regulated utilities Segment summary Q2 2024 State summary Three months ended Average customers June 30 Q2 2024 (M) DE ‘22-’24 CAGR South Carolina 1.3M DE Virginia 1.1% 2.8 31% DE South Carolina 2.7% 1.3 Electric 2.0% 0.8 4.0M State utility Gas 3.8% 0.5 customers¹ Total utility custom
Slide 27: Weather: degree days
Weather Degree days Quarter ended 6/30 Six months ended 6/30 2024 2023 2024 2023 Actual 179 204 1,838 1,675 Heating Normal 260 260 2,200 2,184 Dominion Energy Virginia Actual 648 358 652 361 Cooling Electric Normal 546 543 550 548 Actual 20 25 640 484 Heating Dominion Energy South Normal 25 26 793 8
Slide 28: Weather: after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2024 YTD Dominion Energy Virginia2 ($42) $16 — — ($26) Versus normal¹ Dominion Energy South (5) 9 — — 4 Carolina3 Total ($47) $25 — — ($22) Q1 Q2 Q3 Q4 2024 YTD $22 $67 — — $89 Versus prior year¹ Dominion Energy Virginia2 Dominion Energy South 10 29 — — 39
Slide 29: Fixed income: Credit ratings
Fixed income Credit ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ S&P updated its outlook to Senior Unsecured Debt Securities Baa2 BBB BBB+ stable from Junior Subordinated Notes Baa3 BBB BBB negative on Enhanced Junior Subordinated Notes Baa3 BBB- BBB- June 6, 2024
Slide 30: Fixed income: Schedule of long-term debt
Fixed income Preliminary and unaudited schedule of long-term debt as of June 30, 2024 ($M) Segment Financing Entity Description Maturity Weighted Avg. Coupon Short-term at 6/30/2024 Long-term at 6/30/2024 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2025-2054 4.31% $350 $17,235 DE Virginia
Slide 31: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of June 30, 2024 ($M) Financing Segment Due Date Entity DE Virginia DE SC Con Energy Corp & Other Total 2024 3.071% Junior Subordinated Notes 08/15/24 DEI - - - 700 700 5.088% Senior Secured Deferred Fuel Cost Bonds 11/01/24 VPFS 65 - - - 65 2024 Total 65
Slide 32: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of June 30, 2024 ($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 5.088% Senior Secured Def