Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q1 2018 Earnings Presentation
15 slides from Dominion Energy's earnings presentation, Apr 27, 2018
Slide 1: First Quarter 2018 Earnings Call
First Quarter 2018 Earnings Call April 27, 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: Operating earnings summary
Operating earnings summary First quarter 2018 versus guidance ($ per share) 1Q 2018 earnings growth drivers $1.15 $1.14 Merchant generation margins $0.95 Farmout transactions Electric transmission growth Gas distribution growth Operating expenses Tax expense/tax reform 1Q 2018 Actual Cove Point in-s
Slide 4: Operating EBITDA summary
Operating EBITDA summary First quarter 2018 versus guidance ($ millions) Operating 1st quarter segment Guidance range Actual¹ drivers versus guidance Operating expenses Power Delivery $395—$435 $423 Electric transmission Merchant margins Power Generation $650—$740 $748 Operating expenses Farmout tra
Slide 5: Dominion Energy Midstream Partners (DM) first quarter 2018 earnings and distributions
Dominion Energy Midstream Partners (DM) First quarter 2018 earnings and distributions – Financial results in line with management expectations • Adjusted EBITDA: $79.5 million¹ – Compared to $75.4 million in 1Q 2017 • Distributable cash flow: $52.1 million¹ – 18% increase over 1Q 2017 – Completed $5
Slide 6: Dominion Energy Midstream Partners (DM) recent events
Dominion Energy Midstream Partners (DM) Recent events – Filed for expedited rehearing with FERC regarding MLP tax allowance • Will take years before any potential impact on DM distributable cash flow • Potential impact not material to Dominion Energy earnings – Cove Point and Atlantic Coast Pipeline
Slide 7: Recap: Credit improvement initiatives
Recap: Credit improvement initiatives Previous earnings call $500 million equity issuance (at-the-market) • Completed in January $1 billion reduction in 2018 and 2019 capital investment $1 billion increase in total credit facility capacity • $6 billion at Dominion Energy • $500 million at Dominion E
Slide 8: Financing plan update
Financing plan update $7—$8 billion of cash returned to Parent between 2016 and 2020 Original plan Alternative plan $7B—$8B $7B—$8B DM equity ~$3 billion COMPLETED² DM $1.5B debt Completes planned $1.3B $1.3B marketed equity issuance through 20201 Questar Pipeline Est. Cove Point GP & LP Total Quest
Slide 9: Operating earnings guidance
Operating earnings guidance Second quarter 2018 ($ per share) $0.80 2Q 2018 earnings growth drivers $0.70 Cove Point export $0.67 Millstone refueling outage Tax expense/tax reform Weather Solar investment tax credits Higher financing/share count 2Q 2017 2Q18 EPS¹ guidance¹ ¹ See page 36 and 37 of th
Slide 10: Financial summary
Financial summary Dominion Energy and Dominion Energy Midstream Partners – First quarter 2018 operating earnings: $1.14 per share¹ • Top of guidance range – Taking aggressive steps to respond to MLP capital markets disruption – 2018 operating earnings guidance range of $3.80 – $4.25 per share¹ • Mid
Slide 11: Strong safety and operating performance
Strong safety and operating performance – Meaningful improvement to last year’s record-setting safety performance through first quarter – Record nuclear operations • 538 days and counting without an unplanned automatic reactor shutdown – Strong electric sales growth • 1.7% weather-normalized year-ov
Slide 12: Gas Infrastructure: Cove Point Liquefaction growth project update
Gas Infrastructure Growth project update – Cove Point Liquefaction Construction is complete Achieved commercial in-service early April – ~$4 billion, multi-year project – First commercial cargo loaded in early April – 20-year take-or-pay export contracts – Annual Cove Point EBITDA: ~$700M Please ref
Slide 13: Gas Infrastructure: Atlantic Coast Pipeline and Supply Header update
Gas Infrastructure Growth project update – Atlantic Coast Pipeline and Supply Header – Successful tree felling season DOMINION ENERGY OWNERSHIP1: • Completed more than 200 miles Atlantic Coast Pipeline Supply Header 48% 100% – Construction progress • Compressor stations in PA, WV, and NC underway •
Slide 14: Power Generation: Greensville growth project update
Power Generation Growth project update – Greensville 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, in
Slide 15: Key Takeaways
Key Takeaways First quarter 2018 earnings and operational highlights Record setting operating and safety performance Successful completion of Cove Point export Greensville County project is on-time and on-budget Construction underway on Atlantic Coast Pipeline and Supply Header Optimistic