Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q2 2023 Earnings Presentation
26 slides from Dominion Energy's earnings presentation, Aug 4, 2023
Slide 1: Q2 2023 earnings call
Q2 2023 earnings call August 4, 2023 Regulated. Resilient. Sustainable.
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: Employee safety
Dominion Energy Employee safety OSHA recordable incident rate¹ ~60% improvement vs. 2016 ~80% safer than industry average 100 employees each work year Number of recordables per 1.78 1.65 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 0.32 2006 2007 2008 2009 2010 201
Slide 4: Business review: Proceeding with pace and with purpose
Dominion Energy Business review Proceeding with pace and with purpose (no changes) Q3 call commentary: Commitments Q4 call commentary: Priorities Premier state-regulated utility profile Durable, high-quality, and predictable long-term earnings growth profile + consistent execution Industry-l
Slide 5: Business review timeline
Dominion Energy Business review timeline (no change) Virginia legislative Business reviewth During Q3 2023 session update: May 5 Conclude business review Investor day (no change) 5
Slide 6: Operating earnings per share: Q2 2023 actual versus revised guidance
Operating earnings per share Q2 2023: Actual versus revised guidance ($ per share) $0.77 June 30: Revised guidance range to reflect expected $0.61 impact of historically mild $0.53 weather and unplanned $0.50 outages at the Millstone Unfavorable weather Power Station¹ impact on utility earnings: $
Slide 7: Operating earnings per share: Actual and guidance
Operating earnings per share Actual and guidance ($ per share) $1.11 Q3 2023 (YoY drivers) $0.87 ▲ Sales ▲ Regulated investment ▼ Interest expense $0.72 ▼ DEV rate reduction² ▼ Cove Point³ ▼ Solar ITC ▼ Millstone planned outage4 ▼ DD&A/other Q3 '22¹ Guidance Q3'23¹ ¹ See second quarter 2023 or third
Slide 8: Dominion Energy Virginia: Robust demand growth
Dominion Energy Virginia Robust demand growth PJM DOM Zone summer peak PJM DOM Zone summer peak (GW) DEV electric sales growth¹ CAGR (2023 – 2033) 2023 2033 63% Updated 39% 35.8 5.0% 5.1% 4.8% 4.3% 25.8 21.9 2.1% Summer peak record of 22.0 GW achieved on 1.4% 7/28/23; exceeds 0.5% PJM projection 202
Slide 9: New Virginia legislation effective July 1st
Dominion Energy Virginia New Virginia legislation effective July 1st “Roll-in” of certain riders results in bill reduction for customers as of July 1st Customer rate ~$350M in annual revenue reduction for jurisdictional customers reduction Residential rates now 22% below the national average
Slide 10: Regulated offshore wind
Dominion Energy Virginia Regulated offshore wind Milestone Target Record of Decision by BOEM 2H 2023 (no change) Construction completion Late 2026 (no change) Rider OSW update approved July 7th 2.6 GW capacity; regulated cost-of-service rider >90% Est. installed cost of ~$10B (including onshor
Slide 11: Selected business updates
Dominion Energy Virginia Selected business updates Rider SNA update approved by SCC Nuclear life extension ~$1.2B capital investment for the first phase of nuclear life extension program which includes investments through 2024 CE-3 approved: 6th consecutive solar rider filing approval Clean En
Slide 12: Selected business updates
Selected business updates Robust economic development and population growth in South Carolina Residential rates now 9% below the national average Natural gas general rate case ongoing DESC Hearings will be completed in coming weeks and a decision expected by October Electric fuel settlemen
Slide 13: Summary
Summary Outstanding safety performance Reported second-quarter 2023 operating earnings of $0.53 per share Executing an industry-leading regulated decarbonization and resiliency investment opportunity to benefit of all stakeholders Offshore wind project continues to move forward on schedule a
Slide 14: Appendix
Appendix W Dominion Energy’
Slide 15: Sale of remaining interest in Cove Point
Sale of remaining interest in Cove Point Transaction overview Agreement to divest remaining 50% noncontrolling interest in Cove Point Buyer: Berkshire Hathaway Energy — Existing general partner and 25% limited partner Implied valuation of 10.8x 2025E EBITDA Competitive and robust sale proces
Slide 16: Sale of remaining interest in Cove Point: Transaction benefits
Sale of remaining interest in Cove Point Transaction benefits Source of Source of efficient capital at attractive valuation efficient capital Significantly more accretive than external equity financing at current share price at attractive 10.8x EBITDA transaction multiple compares favorably to
Slide 17: Best-in-class O&M control
Best-in-class O&M control Electric non-fuel O&M per sales ($/MWh) $200 Top quartile D¹ Peer² $/MWh Electric non-fuel O&M Lower is better $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 D Ranking: 3rd 3rd 2nd 2nd 1st 2nd 2nd 2nd 2nd 2nd Note: Source of data is FERC Form 1 for respective annual p
Slide 18: Regulated electric sales growth
Regulated electric sales growth DEV and DESC combined LTM¹ Q2 ’23 YoY weather normal sales growth² Regulated electric sales trends Residential Commercial Industrial Govt/Other Total Robust commercial load growth driven by Data Centers 11.0% Residential segment growth driven by attractive 4.0% 0.
Slide 19: Customers
Customers State-regulated utilities Segment summary Q2 2023 State summary Three months ended DE Customers June 30 South Carolina Q2 2023 (M) Gas Distribution ‘21-’23 CAGR 1.2M 3.0M 18% DE Virginia 0.9% 2.7 43% DE South Carolina 2.3% 1.2 Electric 1.6% 0.8 Gas 3.7% 0.4 7.0M state utility Gas Distribut
Slide 20: Weather
Weather Degree days Quarter ended 6/30 Six months ended 6/30 2023 2022 2023 2022 Actual 204 297 1,675 2,192 Heating Normal 260 291 2,184 2,264 Dominion Energy Virginia Actual 358 502 361 513 Cooling Electric Normal 543 517 548 522 Actual 25 33 484 783 Heating Dominion Energy South Normal 26 29 805 8
Slide 21: Weather: After-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($64) ($51) – – ($115) Versus normal¹ Dominion Energy South (15) (20) – – (35) Carolina3 Gas Distribution4 (3) (0) – – (3) Total ($82) ($71) – – ($153) Q1 Q2 Q3 Q4 2023 YTD Dominion Energy Virginia2 ($67) ($42) – – ($109)
Slide 22: Fixed income: Credit ratings
Fixed income Credit ratings Dominion Energy, Inc. Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ BBB+ Senior Unsecured Debt Securities Baa2 BBB BBB+ Junior Subordinated Notes Baa3 BBB BBB Enhanced Junior Subordinated Notes Baa3 BBB- BBB- Preferred Stock Ba1 BBB- BBB- Short-Term/Commercial Paper P-2 A-
Slide 23: Fixed income: Credit ratings (cont'd)
Fixed income Credit ratings (cont’d) East Ohio Gas Co. Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Negative Negative DESC Moody’s S&P Fitch Corporate/Issuer Baa1 BBB+ A- First Mortgage Bonds A2 A A+ Short-Term/Commercial Paper P-2 A-2 F2 Ou
Slide 24: Fixed income: Schedule of long-term debt
Fixed income Preliminary and unaudited schedule of long-term debt as of June 30, 2023 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 6/30/2023 Long-term at 6/30/2023 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2024-2053 4.16% $350 $15,585 DE Virginia VE
Slide 25: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of June 30, 2023 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DESC Con Assets Corp & Other Total 2023 2020 Series D Senior Notes (variable) 09/15/23 DEI - - - - 1,000 1,000 Term Loan Credit Agreement (variable) multiple DECPH - - - 64 - 64 2
Slide 26: Fixed income: Schedule of debt maturities
Fixed income Schedule of debt maturities as of June 30, 2023 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2026 3.15% 2016 Series A Senior Notes 01/15/26 VEPCO 750 - - - - 750 6.99% Private Placement Senior Notes 01/15/26 PSNC - 50 - - - 50 1.45% 202