Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q3 2015 Earnings Presentation
15 slides from Dominion Energy's earnings presentation, Nov 2, 2015
Slide 1: Third Quarter 2015 Earnings Call
Third Quarter 2015 Earnings Call November 2, 2015
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 and Dominion Midstream. The statements relate to, among other things, expectations, estimates and projections concer
Slide 3: Operating Earnings Summary
Operating Earnings Summary Third Quarter 2015 Versus Guidance $1.10 $1.03 3rd Quarter Drivers $0.95 Higher merchant margins Lower operating expenses Delay in strategic undergrounding Guidance Actual Range Operating EPS* *See page 30 of the third quarter 2015 Earnings Release Kit for a reconciliation
Slide 4: Operating EBITDA Summary
Operating EBITDA Summary Third Quarter 2015 Versus Guidance (in $millions) Operating Guidance Actual Drivers Segment EBITDA EBITDA Dominion Virginia Delay in Strategic $390 - $410 $388 Power Undergrounding Dominion Higher merchant margins $755 - $820 $796 Generation Lower operating expenses Higher d
Slide 5: Dominion Midstream Partners Third Quarter 2015 Earnings and Distribution
Dominion Midstream Partners (DM) Third Quarter 2015 Earnings and Distribution – Financial Results in line with Management expectations • Net Income $18.0 million • Adjusted EBITDA $20.3 million* • Distributable Cash Flow $19.8 million* – Distribution Results • Board declared 3Q 2015 cash distributio
Slide 6: Cash Flow and Financing Activities
Cash Flow and Financing Activities Third Quarter 2015 – Cash Flow & Liquidity • $3.4 billion in funds from operations for the first 9 months of the year • $2.6 billion in commercial paper and letters of credit outstanding • $4.5 billion of credit facilities • $2.0 billion of liquidity – Equity Finan
Slide 7: Operating Earnings Guidance
Operating Earnings Guidance Fourth Quarter 2015 $0.95 4th Quarter Drivers $0.84 $0.85 Growth projects Higher merchant margins Lower capacity payments Lower farmout earnings Share dilution 4Q 2014 4Q 2015 EPS* Guidance* *See page 36 and 37 of the third quarter 2015 Earnings Release Kit for a reconcil
Slide 8: Hedged Power Update
Hedged Power Update Millstone Hedge Position 99% Hedged 83% Hedged $65.06 $56.98 $52.43 $51.93 $46.59 $45.52 2014 2015 2016 NEPOOL Baseload Avg Hedge Position NEPOOL ATC Power Price 2015-2016 forward curves as of October 21, 2015. Please refer to page 2 for risks and uncertainties related to project
Slide 9: Dominion Generation Growth Projects Update
Dominion Generation Growth Projects Update – Brunswick County – Greensville County • ~90% complete – On Time, On Budget • Construction of a ~1,588 • Expect in service mid-2016 MW natural gas fired plant • Estimated Costs of $1.3 billion • Filed CPCN/Rider July 2015 • Hearing scheduled for Jan 2016 •
Slide 10: Contracted Solar Strategy
Contracted Solar Strategy Recycle Capital through Joint Venture – Joint Venture Announced in September • Agreement to sell 33% ownership in 425 MW from ‘13, ‘14, & ‘15 projects • ~$300M consideration from SunEdison – Benefits: Immediately accretive to Dominion ITCs preserved Maintain flexibili
Slide 11: Dominion Energy Growth Projects Update
Dominion Energy Growth Projects Update – First Utica lease agreement closed in September • Conveyed approximately 16,000 acres of development rights – Atlantic Coast Pipeline & Supply Header (~1.5 Bcf/day each) • Pipeline surveying over 85% complete and detailed engineering ~75% complete • Awarded s
Slide 12: Cove Point Liquefaction
Dominion Energy Cove Point Liquefaction Project is ~47% complete – Engineering is ~95% complete – Procurement of engineered equipment is ~95% complete – Main cryogenic heat exchanger delivered in October – All 34 FERC construction packages submitted and approved Construction is Heat exchanger On-tim
Slide 13: Gas Infrastructure Demand Driven Growth
Gas Infrastructure Demand Driven Growth Focus on demand-driven projects moving gas to end use customers – Cove Point Export ~3 Bcf/day of – Atlantic Coast Pipeline Growth – DTI Supply Header Projects Underway – Nine Market Access Projects • CPV St. Charles and Keys Energy power generation projects •
Slide 14: Key Takeaways
Key Takeaways Third Quarter 2015 Highlights Executing the growth plan and delivering on guidance – Dominion • Operating earnings of $1.03 per share at midpoint of third quarter guidance range* • Strong operating and safety performance in the third quarter • Major growth projects continue, on-time an
Slide 15: Third Quarter 2015
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