Dominion Energy, Inc. · NYSE:D
Dominion Energy — Debt Investor Presentation (February 2018)
17 slides from Dominion Energy's debt investor presentation, February 2018
Slide 1: Fixed Income Investor Meetings
Fixed Income Investor Meetings February / March 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: Contents
Dominion Energy Contents Dominion Energy is Delivering Sustainable Annual Growth and Best-in-Class Shareholder Returns – Proposed combination with SCANA – Major project updates – Credit initiatives 2018 Investor Meetings 4
Slide 4: Sustainability & Environmental Leadership
Sustainability & Environmental Leadership Reducing our environmental footprint by investing in air quality improvements Reducing Air Emissions Cumulative methane emissions reductions 0% 0.0 Million Cubic Feet of Gas Saved SO₂ NOx Hg Percent Reduction (Lbs/MWh) -20% -1.0 -40% -2.0 -3.0 -60% About 4.4
Slide 5: SCANA combination overview
SCANA combination overview – Dominion Energy and SCANA Corporation to combine • Stock-for-stock merger • $7.9 billion equity value and $14.6 billion enterprise value – Grows Dominion Energy’s regulated footprint • Adds attractive regulated utility franchises in fast-growing Southeastern U.S. • Enhan
Slide 6: Greensville Power Station
Greensville Power Station On-time & on-budget Construction is on-time & on-budget – 1,588 MW Gas Fired Combined Cycle plant in Greensville County, VA • Will be the largest, most efficient single combined-cycle plant Charlottesville in the U.S. Richmond • 3-on-1 configuration; Duct burners, inlet air
Slide 7: Cove Point Liquefaction
Cove Point Liquefaction Construction is complete – DOE approved exporting of commissioning cargoes – Feed gas introduced – Began producing LNG February 1 – Final tuning and testing phase – Expect in-service early March Final stages of commissioning Heat exchanger Please refer to page 2 for risks and
Slide 8: Atlantic Coast Pipeline and Supply Header
Atlantic Coast Pipeline and Supply Header ACP OWNERSHIP STRUCTURE: – Limited Notice to Proceed Dominion Energy¹ Duke Energy 48% 47% approved by FERC; tree-felling Southern Company 5% currently underway SUPPLY HEADER OWNERSHIP: Dominion Energy¹ 100% – Additional permits received: ACP – North Carolina
Slide 9: Dominion Energy Future Capital Growth
Dominion Energy Future Capital Growth Reliability, Demand Driven Programs Provide Sustainable Growth Scale in Gas and Sustainable Annual Growth Electric Infrastructure Programs Capital1 Power - Nuclear Life Extension Gen. - Pumped Storage - Coastal Offshore Wind (12 MW) ~$1.2 New Annual - Solar Grow
Slide 10: Dominion Energy Midstream Partners
Dominion Energy Midstream Partners Benefits to Dominion Energy Uses of ~$7 - $8 billion in DM Cash Contributions – 2016-20201 Strengthen DEI Balance Sheet Through Debt Reduction Dominion Energy Unique MLP Grow the Dividend 10% Per Year 2017-20202 Structure Produces Significantly Positive Cash Flow S
Slide 11: Credit-Focused Initiatives
Credit-Focused Initiatives – Equity • $500 million at-the-market (ATM) issuance; completed in January • $300 million dividend reinvestment program (DRIP) – Capital reductions • $1 billion of capital investment reduction during 2018—2019 No impact on growth capital guidance – Liquidity • Increasing
Slide 12: 2018 External Financing Activities
2018 External Financing Activities Excluding SCANA transaction¹ ($ millions) Planned Issuer financings Maturities Net Change Status ATM: $500M N/A N/A Completed in January DEI DRIP: $300M N/A N/A To come Long-term debt: $1,000—$1,500 $2,050 ($1,050) – ($550) To come VEPCO $1,100—$1,400 $850 $250 - $
Slide 13: Existing Long-term Debt Maturities
Existing Long-term Debt Maturities ($ millions) $4,500 $4,250 $4,000 $3,500 $2,900 $3,000 $2,500 $2,400 $2,150 $2,000 $2,000 $1,760 $1,500 $1,500 $1,100 $1,000 $500 $0 2018 2019 2020 2021 2022 2023 2024 2025 DEI VEPCO DEGH QGC Q Pipe DEM Other* Note: Does not include maturities of currently planned
Slide 14: Dominion Energy Liquidity
Dominion Energy Liquidity Liquidity shared across financing entities $0.5 billion $6.0 billion Credit Facilities1 Credit Facility $3.5B sublimit DEI (CP Issuer) $1.5B sublimit DM $0.75B (Not CP Issuer) Intercompany note sublimit VEPCO (CP Issuer) $0.25B sublimit Intercompany note Dominion Gas (CP Is
Slide 15: Debt at year-end 2018
Dominion Energy TopCo DEI – not only a traditional Utility HoldCo On an accounting basis, the calculation of % HoldCo debt yields ~48% for DEI…but DEI is NOT a traditional HoldCo YE 2018E % Consolidated debt at DEI¹ 50% DEI Level Assets/Operations 45% Dominion Energy TopCo level debt = 48% of Total
Slide 16: Credit Ratings Profile
Credit Ratings Profile Dominion Energy, Inc. Moody's S&P Fitch – Target Credit Ratings: Corporate/Issuer Senior Unsecured Debt Securities Baa2 Baa2 BBB+ BBB BBB+ BBB+ • DEI: High Triple-B range Junior Subordinated Notes Enhanced Junior Subordinated Notes Baa3 Baa3 BBB BBB- BBB BBB- Short-Term/Commer
Slide 17: Financing Structure with Operating Segments
Financing Structure with Operating Segments DEI1 Dominion Energy Gas Merchant Atlantic Coast Dominion Energy VEPCO1 Generation Pipeline2(48.0%) Midstream Holdings1 Dominion Energy Blue Racer2 Dominion Energy Utility Generation Questar Gas1 Transmission (50.0%) Carolina Gas Electric Dominion Dominion
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