Dominion Energy, Inc. · NYSE:D
Dominion Energy — Investor Presentation (July 2020)
21 slides from Dominion Energy's investor presentation, Jul 5, 2020
Slide 1: Investor update
Dominion Investor update Energy’ July 5, 2020
Slide 2: Important note for investors
Dominion Energy 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 conce
Slide 3: Transaction overview
Dominion Energy Transaction overview ▪ Agreement to divest substantially all Gas Transmission & Storage segment assets ▪ Buyer: Berkshire Hathaway Energy ▪ ~$9.7 billion transaction value ▪ Includes the conveyance of ~$5.7 billion of debt¹ ▪ Cash consideration of ~$4 billion ▪ Expect to repurchase ~
Slide 4: Transaction overview: assets being divested and retained
Dominion Energy Transaction overview ▪ Assets being divested (wholly-owned unless noted): ▪ Dominion Energy Transmission (DETI)—Serves Mid-Atlantic region ▪ Questar Pipelines—Serves Rocky Mountain region ▪ Carolina Gas Transmission—Serves South Carolina and Georgia ▪ Iroquois Gas Transmission (50% i
Slide 5: Opportunity for significant long-term value creation for shareholders
Dominion Energy Opportunity for significant long-term value creation for shareholders ▪ Strategic review led to agreement with respected operator ✓ Valuation, employee commitments, and operating credentials ▪ Dominion Energy strategic and financial repositioning considerations ✓ Value of our industr
Slide 6: Strategic repositioning towards 'pure-play' state-regulated utility
Dominion Energy Strategic repositioning towards ‘pure-play’ state-regulated utility; highlighted clean-energy profile Premier state-regulated utility operations Industry-leading clean energy profile Increased long-term earnings and dividend growth Improved credit profile and balance sheet Narrowed f
Slide 7: Increasing contribution from premier state-regulated utility franchises
Dominion Energy Increasing contribution from premier state-regulated utility franchises State- Divestiture of regulated utility gas transmission & contribution storage assets (2020) State-regulated utility operations: (2019) Divestiture of ~85%—90% Blue Racer & of pro forma State-regulated merchant
Slide 8: Approaching 100% state-regulated earnings profile
Dominion Energy Approaching 100% state-regulated earnings profile State-regulated utility operations Regulated-like Dominion Energy Dominion Energy Contracted Gas Distribution Assets Virginia South Carolina (formerly Contracted Generation) CT OH UT VA ID States of operation WY WV SC CA Southeastern
Slide 9: Industry-leading clean energy profile
Dominion Energy Industry-leading clean energy profile NET ZERO carbon and methane emissions by 2050 CO2e emissions of gas Est. growth capital investment Enterprise-wide generation (MWh) businesses (2020 to 2035) Immediate Zero-carbon ~35% ~70% 50% generation/storage¹ Up to ~$47B zero-carbon zero-car
Slide 10: 2020 operating earnings per share guidance
Dominion Energy 2020 operating earnings per share guidance¹ Original 2020E Updated 2020 Changes guidance² guidance² DEV DESC $2.89—$3.11 Gas Corp & (Slide 7 of Q4 2019 — $2.89—$3.11 earnings materials) Distribution Other Contracted Assets (+) 50% retained interest in $0.24—$0.28 $0.48—$0.52 (previou
Slide 11: Operating earnings per share guidance
Dominion Energy Operating earnings per share guidance¹ ~10%—11% ~6.5% growth annual EPS ~$3.85—$3.90² growth ~$3.50² ✓ Utility-focused, predictable and Includes programmatic investment estimated full- profile year impact of planned share ✓ ESG, customer growth and repurchases reliability-driven rate
Slide 12: Dividend per share guidance
Dominion Energy Dividend per share guidance All dividend declarations subject to Board approval Rebasing reflects ~6% asset sale + normalized payout annual ~$3.45 DPS growth Q1 (Mar): $0.94 ~$2.50 Q2 (Jun): $0.94 Est. Q3 (Sep): $0.94 ✓ Rebased dividend reflects revised operating Target dividend Est.
Slide 13: Relative investment proposition
Dominion Energy Relative investment proposition Earnings Dividend payout Business risk Pure-play ESG growth guidance ratio guidance profile ✓ ✓ + ~6.5% ~65% Excellent Peer guidance averages Best-in-class peers ✓ ✓ 6.4% 63% Excellent Focus on achieving track-record of consistent and credible executio
Slide 14: Improved credit profile and balance sheet
Dominion Energy Improved credit profile and balance sheet Allocation of transaction value State-regulated utility contribution History: Improving metrics and lowered thresholds Debt reduction Moody's S&P ~60% 85%—90% 16% GT&S Moody’s/S&P threshold (pre-SCANA): 15% 70% sale 15% ~$9.7B 65% SCANA 14% A
Slide 15: Energy Gas Holdings (DEGH) — debt financing entity
Dominion Energy Dominion Energy Gas Holdings (DEGH) — debt financing entity ▪ DEGH will be transferred as-is to BHE with the exception of a 50% interest in Cove Point which be retained debt-free by Dominion Energy ▪ BHE is an “A” rated company and is committed to deleveraging DEGH post-closing ▪ The
Slide 16: Atlantic Coast Pipeline
Dominion Energy Atlantic Coast Pipeline ▪ Dominion Energy and Duke Energy announced the cancelation of the Atlantic Coast Pipeline due to ongoing delays and increasing cost uncertainty which threaten the economic viability of the project ▪ Deeply appreciate the tireless efforts and important contrib
Slide 17: Strategic repositioning towards 'pure-play' state-regulated utility
Dominion Energy Strategic repositioning towards ‘pure-play’ state-regulated utility; highlighted clean-energy profile Premier state-regulated utility operations Industry-leading clean energy profile Increased long-term earnings and dividend growth Improved credit profile and balance sheet Narrowed f
Slide 18: Appendix
Appendix Please refer to page 2 for risks and uncertainties related to projections and forward looking statements
Slide 19: Virginia leading the way on clean energy transition
Appendix Virginia leading the way on clean energy transition ✓ Most comprehensive renewable energy mandate in the nation ✓ Will create thousands of jobs, putting Virginia to work ✓ Regional, state, and local economic growth OFFSHORE SOLAR OR ENERGY ✓ Significant environmental benefits WIND ONSHORE W
Slide 20: Payout ratio benchmarking: 2020E
Appendix Payout ratio benchmarking: 2020E Average excl. D: 64% 85% 81% 80% 73% 72% 68% 68% 67% 66% 66% 65% 64% 63% 63% 62% 62% 62% 62% 62% 58% 58% 58% 57% 52% D SO AGR DUK ED PPL WEC ETR EVRG AEP D NI LNT FE XEL ES CMS DTE NEE PEG AEE EIX SRE EXC (status (pro quo) forma) Note: All dividend declarati
Slide 21: 2020 long-term debt issuance plan
Appendix 2020 long-term debt issuance plan ($M) Original guidance: Year-to-date Remaining issuance Gross issuance range¹ issuance for year Dominion Energy Virginia $800—$1,000 $— $800—$1,000 Gas Transmission & Storage $400—$700 $— Transferring to BHE Gas Distribution $1,800—$2,000 $2,000 $— Dominion