Dominion Energy, Inc. · NYSE:D
Dominion Energy — Dominion Resources — Q1 2016 Earnings Presentation
16 slides from Dominion Energy's earnings presentation, May 4, 2016
Slide 1: First Quarter 2016 Earnings Call
First Quarter 2016 Earnings Call May 4, 2016
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 First Quarter 2016 Versus Guidance $1.05 $0.96 1st Quarter Drivers $0.90 Lower operating expenses Mild weather Guidance Actual Range Operating EPS* *See page 30 of the first quarter 2016 Earnings Release Kit for a reconciliation to GAAP. Please refer to page 2 for risks an
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary First Quarter 2016 Versus Guidance (in $millions) Operating Guidance Actual Drivers Segment EBITDA EBITDA Dominion Virginia $380 - $410 $385 Mild Weather Power Lower operating expenses Dominion $575 - $650 $610 Mild Weather Generation Merchant Margins Dominion Energy $350 -
Slide 5: Dominion Midstream Partners First Quarter 2016 Earnings and Distribution
Dominion Midstream Partners (DM) First Quarter 2016 Earnings and Distribution – Financial Results in line with Management expectations • Net Income $23.1 million • Adjusted EBITDA $24.9 million* - a 111% increase over 1Q 2015 • Distributable Cash Flow $20.3 million* - a 71% increase over 1Q 2015 – D
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities First Quarter 2016 – Cash Flow & Liquidity • $1.1 billion in funds from operations for the first 3 months of the year • $3.1 billion in commercial paper and letters of credit outstanding • $5.5 billion of credit facilities • $2.6 billion of liquidity – Public Finan
Slide 7: Operating Earnings Guidance: Second Quarter 2016
Operating Earnings Guidance Second Quarter 2016 $0.75 2nd Quarter Drivers $0.73 $0.65 Growth Projects Lower Capacity Expense Lower Effective Tax Rate Refueling Outage at Millstone Interest Expense and Share Dilution 2Q 2015 2Q 2016 EPS* Guidance* *See page 36 and 37 of the first quarter 2016 Earning
Slide 8: Operating Earnings Guidance: Second Half 2016 Growth Drivers
Operating Earnings Guidance Second Half 2016 Growth Drivers $2.14 $.04 Growth/Other $.02 Organization changes $.04 Solar ITCs $.16 Capacity Performance $.07 Millstone Outage $1.72 $1.66 $1.72 $.09 Weather First half First half Second half Second half 2015 EPS* 2016 EPS 2015 EPS* 2016 EPS Guidance Gu
Slide 9: Hedged Power Update
Hedged Power Update Millstone Hedge Position 93% Hedged 8% Hedged* $56.97 $51.50 $42.40 $42.14 $34.91 $25.65 2015 2016 2017 NEPOOL Baseload Avg Hedge Position NEPOOL ATC Power Price *For 2017, we have hedged only off-peak Millstone capacity. 2015-2016 forward curves as of April 29, 2016. Please refe
Slide 10: Growth Project Update – Brunswick
Dominion Generation Growth Project Update – Brunswick – 1,358 MW Brunswick County Power Station • 3-on-1 gas fired combined cycle Charlottesville • Began commercial operations in April Richmond Completed construction ahead of schedule Brunswick – Expected to save customers over $1 billion in fuel
Slide 11: 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 • Major contracts executed with
Slide 12: Growth Project Update – Solar
Dominion Generation Growth Project Update – Solar – Utah long-term contracted solar projects expected in- service this Fall • Four brothers – 50% ownership in 320 MW facility • Three Cedars – 50% ownership in 210 MW facility – Virginia solar projects • Commenced construction on Eastern Shore, Virgin
Slide 13: Growth Project Update – Cove Point Liquefaction
Dominion Energy Growth Project Update – Cove Point Liquefaction Construction is On-time & On-budget – Engineering is ~99% complete – Procurement of engineered equipment is ~98% complete Project is ~64% complete Heat exchanger Please refer to page 2 for risks and uncertainties related to projections
Slide 14: Growth Project Update – ACP, Supply Header, Other Energy
Dominion Energy Growth Project Update – ACP, Supply Header, Other Energy – Atlantic Coast Pipeline & Supply Header (1.5 Bcf/day each) • Filed FERC Applications September 2015 • Amendment filed in March with an updated route • Notice of Intent received from FERC • Surveying and pipeline engineering w
Slide 15: Key Takeaways: First Quarter 2016 Highlights
Key Takeaways First Quarter 2016 Highlights Executing the growth plan and delivering on guidance – Dominion Operating earnings of $0.96 per share in the middle of first quarter guidance range* – Strong operating and safety performance in the first quarter – Brunswick County Power station in-service
Slide 16: First Quarter 2016
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