Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q3 2017 Earnings Presentation
15 slides from Dominion Energy's earnings presentation, Oct 30, 2017
Slide 1: Third Quarter 2017 Earnings Call
Third Quarter 2017 Earnings Call October 30, 2017
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 Third Quarter 2017 Versus Guidance ($ per share) $1.15 $1.04 3rd Quarter Drivers Versus Guidance $0.95 Interest expense Income taxes Operating expenses Merchant power margins Weather Guidance Actual Range Operating EPS* *See page 30 of the third quarter 2017 Earnings Relea
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary Third Quarter 2017 Versus Guidance ($ millions) Operating Guidance 3rd Quarter segment range Actual* Drivers versus Guidance Weather Power Delivery $420—$465 $441 Operating expenses Merchant margins Power Generation $855—$935 $865 Weather Gas Infrastructure $450—$475 $471 Op
Slide 5: Dominion Energy Midstream Partners (DM)
Dominion Energy Midstream Partners (DM) Third Quarter 2017 Earnings and Distribution – Financial results in line with management expectations • Net Income $48.6 million • Adjusted EBITDA $76.2 million*— ~3x 3Q 2016 Adjusted EBITDA • Distributable Cash Flow $45.8 million*— ~90% higher than 3Q 2016 –
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities Third Quarter 2017 – Cash flow & liquidity* • $3.7 billion in cash from operating activities through 3Q 2017 • $5.5 billion of credit facilities • $2.5 billion of liquidity at quarter end – Recent significant financing activities • DEI Mandatory Convertible Securit
Slide 7: Long-term Financing Activities
Long‐term Financing Activities 2017 Financing Plan ($ millions) Financing Entity Financing plan Status DEI DRIP Equity $300 In progress DEI Debt* $2,000—$2,300 Complete 2014 MC Jr Debt DEI $1,000 Complete Remarketing** VEPCO Debt $1,400—$1,700 Complete QGC Debt $75—$125 Complete Legend Dominion Ener
Slide 8: Operating Earnings Guidance
Operating Earnings Guidance Fourth Quarter 2017 ($ per share) 4th Quarter Drivers Versus Last Year $1.00 $0.99 Regulated growth $0.80 Products and Services agreement Millstone refueling outage Cove Point import contract roll‐off Solar investment tax credits PJM electric capacity expenses 4Q 2016 4Q
Slide 9: Financial Summary
Financial Summary Dominion Energy and Dominion Energy Midstream Partners – Third quarter operating earnings of $1.04 per share* • In the middle of the guidance range of $0.95 to $1.15 – Fourth quarter operating earnings guidance of $0.80—$1.00 per share* – Affirmed 2017 operating earnings guidance o
Slide 10: Power Generation: Growth Project Update – Greensville
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 11: Power Generation: Growth Project Update – Solar
Power Generation Growth Project Update – Solar Focus on Virginia and North Carolina solar demand Project State Capacity Est. In‐service In‐service in 2015/2016 VA/NC 216 MW Complete IS37 NC 79 MW Complete Remington Solar VA 20 MW Complete Clarke County VA 10 MW Complete Cherrydale VA 20 MW C
Slide 12: Gas Infrastructure: Cove Point Liquefaction
Gas Infrastructure Growth Project Update – Cove Point Liquefaction Construction is On‐time & On‐budget – All of the project’s systems are in commissioning phase – DOE approved exporting of commissioning cargoes – FERC approved introduction of hydrocarbons to generate LNG – Commence LNG production in
Slide 13: Atlantic Coast Pipeline and DETI Supply Header
Gas Infrastructure Atlantic Coast Pipeline and DETI Supply Header – Received FERC Certificate on ACP OWNERSHIP STRUCTURE: Dominion Energy* 48% Supply Header receipt points October 13th Duke Energy Southern Company 47% 5% SUPPLY HEADER OWNERSHIP: – Expect to receive additional Dominion Energy* 100% s
Slide 14: Gas Infrastructure: Regulatory Initiatives
Gas Infrastructure Regulatory Initiatives Dominion Energy Transmission Modernization Program* Revenue • Preparing to file a DETI rate case in first half of 2018 Base system rates have not been reset since 1994 Incremental Contracts • Recovery of modernization capital investment ~40% Base System th
Slide 15: Key Takeaways
Key Takeaways Third Quarter 2017 Earnings and Operational Highlights Executing the growth plan and delivering on guidance – Strong operating and safety performance in third quarter 2017 – Greensville County project on‐time and on‐budget – Cove Point Liquefaction project on‐time and on‐budget – Atlan