Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q3 2021 Earnings Presentation
32 slides from Dominion Energy's earnings presentation, Nov 5, 2021
Slide 1: Q3 2021 earnings call
Q3 2021 earnings call November 5th, 2021
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: Compelling investment proposition
Compelling investment proposition Comprehensive total shareholder return Industry-leading 6.5% 3.5% ~10% ESG EPS growth rate dividend shareholder through 2025 yield return profile $32B 6% Industry’s largest 5-year growth regulated capital plan annual DPS Pure-play growth state-regulated decarbonizat
Slide 4: Operating earnings per share
Operating earnings per share Q3 2021: Actual versus guidance ($ per share) $1.11 $1.10 $0.95 23 consecutive ▲ Regulated investment quarters ▲ Sales ▲ Share repurchase of delivering weather- ▼ Depreciation normal results that meet ▼ Weather or exceed quarterly guidance midpoint Actual¹ / Guidance¹ We
Slide 5: Guidance
Guidance Operating earnings and dividends per share Earnings Dividends $0.85—$0.95 ▲ Regulated investment Q4 2021 ▲ Sales Target payout 65% (YoY drivers) ▲ Margins ratio (no change) ▼ COVID deferred O&M ▼ Tax/other $3.80—$3.90 $2.52 2021 2021 (no change) (narrowed range) Through 2025 6.5% per year T
Slide 6: Select financial updates
Select financial updates Sustainable ✓ $1B in Green bonds at DEI financing ✓ Use of proceeds: green expenditures associated with solar investments ✓ Agreement to sell Questar Pipelines to Southwest Gas Holdings Questar ✓ Transaction implied enterprise value: $1.975B including $430M of debt Pipelines
Slide 7: Safety—OSHA recordable incident rate
Employees Safety—OSHA recordable incident rate¹ 2.05 1.78 100 employees each work year Number of recordables per 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 0.41 0.48 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2019 2021 Industry average² ¹ Pro
Slide 8: Select business updates
Select business updates ✓ Comprehensive gas rate case settlement with Public Staff and other intervenors ✓ 9.6% authorized ROE and 51.6% authorized equity ✓ Interim rates effective November 1st ✓ New clean energy programs reduce emissions and support energy conservation North Carolina ▪ GreenTherm –
Slide 9: Dominion Energy Virginia
Dominion Energy Virginia Triennial review = filed settlement pending SCC approval DEV, SCC Staff, OAG, and other Parties filed a comprehensive settlement agreement in the Company's pending triennial base rate case. If approved by the SCC, the agreement would resolve the ongoing review of the company
Slide 10: Dominion Energy Virginia: Executing the plan for the benefit of customers
Dominion Energy Virginia Executing the plan for the benefit of customers ✓ CE-2 rider filing with SCC included about 1,000MW solar and battery storage Clean Energy ▪ $1.4B in capital investment filings ▪ Expect final order by Q2 2022 ✓ Rider SNA¹ filed with SCC for costs to extend the operating lice
Slide 11: Coastal Virginia Offshore Wind: Continues to meet schedule milestones
Dominion Energy Virginia Coastal Virginia Offshore Wind: Continues to meet schedule milestones Milestones Target Construction & Operation Plan submitted ✓ Dec. 2020 Met target Notice of Intent issued by BOEM ✓ July 2021 Met target CPCN/Rider filing with VA SCC ✓ Fall 2021 Met target Final order from
Slide 12: Coastal Virginia Offshore Wind: Growing a clean energy economy
Dominion Energy Virginia Coastal Virginia Offshore Wind: Growing a clean energy economy ✓ Approximately 900 jobs and $143M in economic impact annually during construction $57M 900 Pay & ✓ Approximately 1,100 jobs and almost $210M Jobs $82M benefits in economic impact annually during 1,100 operation
Slide 13: Coastal Virginia Offshore Wind: 2.6GW offshore wind project
Dominion Energy Virginia Coastal Virginia Offshore Wind: 2.6GW offshore wind project Capacity 2.6GW Offshore lease ~113K acres located 27 miles off Virginia coast Turbines ~176 Siemens-Gamesa 14.7MW turbines Est. installed cost ~$10B (~$3,800/kW inclusive of transmission) Est. capacity factor 43.3%
Slide 14: Coastal Virginia Offshore Wind: Experienced partners
Dominion Energy Virginia Coastal Virginia Offshore Wind: Experienced partners Wind turbine Offshore Transport & Monopiles Transition pieces generators substations install Note: illustration not to scale. 14
Slide 15: Coastal Virginia Offshore Wind: How does the cost of energy compare?
Dominion Energy Virginia Coastal Virginia Offshore Wind: How does the cost of energy compare? U.S. offshore wind levelized cost of energy $/MWh¹ $180 $147 $146 $105 $104 $94 Avg. LCOE of $100/MWh² $88 $87 $87 $87 $86 $74 $73 $60 Project A Project B Project C Project D Project E Project F Project G P
Slide 16: Typical residential electric customer
Dominion Energy Virginia Typical residential electric customer Historic growth rate1 Projected bill CAGR1 Current rate (cents per kWh)2 (2008—2020) (inclusive of VCEA investment) (17%) 18.1 3.4% 14.0 11.6 1.8% 2.1% 1.8% 0.7% Avg. annual Avg. annual DEV RGGI states US 2008—2035E 2019—2035E 2021E infl
Slide 17: Summary
Summary ✓ Safety performance is tracking closely to last year’s record-setting performance ✓ 23rd consecutive quarter of weather-normal earnings at or above guidance midpoint ✓ Narrowed 2021 earnings guidance range; affirmed long-term earnings and dividend growth guidance ✓ Executing across the larg
Slide 18: Appendix
Appendix 18 83 \\\y
Slide 19: Industry leading ESG profile
Industry leading ESG profile Committed to sustainable, reliable, affordable and safe energy and achieving net zero by 2050 Environment Social Governance Best year 42% reduction in safety (2020) Board refreshment 30%+ diverse with ~7 years in CO2e emissions 1% annual increase average tenure workforce
Slide 20: Political participation and contributions
Political participation and contributions Participation Transparency ▪ Actively participate at local, state and national levels ▪ Voluntarily report political and lobbying contributions to ▪ Contribute to activities affecting our business consistent ― 527 tax-exempt political organizations with our
Slide 21: ESG performance
ESG performance Third-party assessments Dominion Energy’s independent 3rd party scoring reflects best-in-class ESG performance Dominion Energy Sector average “Leadership “Leadership band” band” “Trendsetter” A- A- Lower score = better 91 “Just 100” B B 32 77 A 28 69 BBB 55 CDP—Climate CDP—Water MSCI
Slide 22: Operating segments
Operating segments Summary¹ State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT UT VA H ID W States of operation Y WV SC CA Southeastern UT & Mid- NC UT Atlantic U.S. NC 2021 operating ~57% ~17% ~13% ~12% earnings contrib
Slide 23: Environment: Investing in support of our clean-energy profile
Environment Investing in support of our clean-energy profile Five-year growth capital (2021—2025) ~$32B $10B/43% vs. prior five-year (2019-2023) growth capex plan¹ Zero-carbon generation & energy storage ▪ Offshore wind ~82% $17B / 52% ▪ Solar ▪ Energy storage ▪ Nuclear relicensing Emissions reduct
Slide 24: Compelling investment proposition
Compelling investment proposition Decarbonization initiatives extend beyond 5-year plan; benefits customers, communities, environment 2020 – 2035 total opportunity Gas 2020 – 2025 portion of total opportunity distribution modernization Electric grid / RNG Nuclear transformation Up to $9B ~$72B life
Slide 25: Environment: Material emissions reductions
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 37% 42%↓ 45% ~70%— ~99% 7% 76% 80%↓ Net zero zero & (conforms to 1.5o low Paris Accord emitting 45% Goals) 52%
Slide 26: Customers
Customers State-regulated utilities Segment summary as of 9/30/2021 State summary DE Three months ended South Carolina Customers Gas Distribution September 30 1.2M 9/30/2021 (M) 3.1M ‘19-’21 CAGR 17% 44% DE Virginia 1.4% 2.7 DE South Carolina 2.4% 1.2 Electric 1.8% 0.8 7.0M Gas 3.6% 0.4 state utilit
Slide 27: Operating earnings per share: Track-record of successful execution
Operating earnings per share Track-record of successful execution Weather normalized operating EPS vs. guidance Upper end guidance Guidance midpoint Lower end guidance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 23 quarters of de
Slide 28: Consolidated financial outlook
Consolidated financial outlook 2021 long-term fixed income issuance plan ($ billions)¹ Issuance guidance range Issued YTD Remaining Dominion Energy Virginia $0.7—$1.0 $0 $0.7—$1.0 Gas Distribution $0.3—$0.5 $0.4 $0 Dominion Energy South Carolina $0.4—$0.6 $0 $0.4—$0.6 Contracted Assets² $0 $0 $0 DEI
Slide 29: Weather
Weather Degree days Quarter ended 9/30 Nine months ended 9/30 2021 2020 2021 2020 Actual 0 19 2,174 1,908 Heating Normal 10 10 2,271 2,290 Dominion Energy Virginia Actual 1,176 1,256 1,696 1,708 Cooling Electric Normal 1,114 1,105 1,608 1,598 Actual 0 0 839 610 Heating Dominion Energy South Normal 0
Slide 30: Weather: After-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2021 YTD Dominion Energy Virginia2 ($10) ($2) $16 – $4 Versus normal¹ Dominion Energy South 4 (7) (16) – (19) Carolina3 Gas Distribution4 (1) 1 – – (1) Total ($8) ($8) $0 – ($16) Q1 Q2 Q3 Q4 2021 YTD Dominion Energy Virginia2 $51 $14 ($19) – $46 Versus prio
Slide 31: 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 32: Fixed income: Credit ratings (cont'd)
Fixed income Credit ratings (cont’d) Dominion Energy Ohio Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Positive Stable DESC Moody’s S&P Fitch Corporate/Issuer Baa2 BBB+ A- First Mortgage Bonds A3 A A+ Short-Term/Commercial Paper P-2 A-2 F2 O