Dominion Energy, Inc. · NYSE:D
Dominion Energy — Q1 2022 Earnings Presentation
30 slides from Dominion Energy's earnings presentation, May 5, 2022
Slide 1: Q1 2022 earnings call
Q1 2022 earnings call May 5, 2022
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% 3.3% ~10% ESG EPS growth rate dividend shareholder through 2026 yield return profile $37B Industry’s largest 5-year growth 6% Pure-play regulated capital plan annual DPS state-regulated decarbonization 85%
Slide 4: Premier state-regulated utility operations
Premier state-regulated utility operations OH VA UT NC 90% state- SC regulated utility segments Utility operations in attractive states ✓ Customer/economic growth 10%¹ ✓ “Common sense” regulation Contracted Assets ✓ Sustainability (Zero-carbon generation) Committed to safe, reliable, affordable and
Slide 5: Decarbonization initiatives extend beyond 5-year plan
Decarbonization initiatives extend beyond 5-year plan Benefits customers, communities, environment Gas distribution modernization / RNG Nuclear life Electric grid transformation Up to $8B ~$73B Up to $15B Emissions Energy extension reduction and storage Up to $4B¹ enabling Solar Up to $4B Offshore U
Slide 6: Operating earnings per share
Operating earnings per share Q1 2022: Actual versus guidance ($ per share) $1.25 25 $1.18 $1.17 consecutive $1.10 quarters of delivering Favorable weather impact weather-normal on utility earnings: $0.01 quarterly results that meet or exceed quarterly guidance midpoint Actual¹ Weather normal² Guidan
Slide 7: Guidance
Guidance Operating earnings and dividends per share Earnings Dividends $0.70—$0.80 ▲ Regulated investment Target growth Q2 2022 ▲ Sales 6.0% per year rate through (YoY drivers) ▲ Normal weather ($0.01) (no change) ▼ Millstone outage ($0.06 – $0.07) 2026 ▼ Tax timing FY 2022 $3.95 —$4.25 FY 2022 $2.6
Slide 8: Consolidated financial outlook
Consolidated financial outlook O&M control initiatives ($M) Cumulative savings of ~$250M+ (’18 – ’21) vs. ~2% annual escalation ✓ Dynamic cost cutting program through $2,736 $2,654 business process improvements and innovation ✓ Sustained O&M management supports EPS growth; creates capacity for capit
Slide 9: Safety – OSHA recordable incident rate
Employees Safety – OSHA recordable incident rate¹ ~35% improvement vs. 2016 ~65% safer than industry average 100 employees each work year 1.78 Number of recordables per 1.50 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 0.52 0.41 0.46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 10: Dominion Energy Virginia: Regulated offshore wind project
Dominion Energy Virginia Regulated offshore wind project Milestone Target Final order from VA SCC Q3 2022 Record of Decision published by BOEM Mid 2023 Construction completion Late 2026 ▪ 2.6GW capacity; regulated cost-of-service rider (subject to approval) ▪ Capital cost of ~$10B (no change) Est. L
Slide 11: Regulated offshore wind
Regulated offshore wind Experienced partners Wind turbine Offshore Transport & Monopiles Transition pieces generators substations install Note: illustration not to scale 11
Slide 12: Select emissions-reduction programs
Select emissions-reduction programs Updates Nuclear Gas Solar DESC life extension Distribution ✓ Rider settlement ✓ CE-2 approval ✓ Launched ✓ Generation reached ▪ 5th consecutive solar CarbonRight modernization ▪ ~$4B in capital filing approval ▪ Empowering customer ▪ Provide efficient and investme
Slide 13: Dominion Energy Virginia
Dominion Energy Virginia Typical residential electric customer bill (cents per kWh)¹ 19.6 (13%) ✓ Rates increased on average <1% per year 13.8 12.0 over the past ten years (below inflation) ✓ DEV residential customer bill as percentage of customer wallet at 1.2%² (down 50 bps since 2010) DEV US RGGI
Slide 14: Summary
Summary ✓ Safety remains our top priority as our first core value ✓ 25th consecutive quarter of weather-normal earnings at or above guidance midpoint range ✓ Affirmed existing earnings and dividend growth guidance ✓ Executing across the largest regulated decarbonization investment opportunity in the
Slide 15: Appendix
Appendix 15 83 \\\y
Slide 16: Industry leading ESG profile
Industry leading ESG profile Committed to safe, reliable, affordable and sustainable energy and achieving net zero by 2050 Environment Social Governance 70%+ reduction 42% reduction OSHA recordable rate³ Board refreshment in Scope 1 CO2e emissions¹ 1% annual increase 6 new directors since 2016 workf
Slide 17: Third-party ESG assessments
Third-party ESG assessments Dominion Energy’s independent 3rd party scoring reflects best-in-class ESG performance Dominion Energy Sector average “Leadership “Leadership “Trendsetter” band” band” “Leader” 94 ✓ . A- ✓ . A- AA Lower score = better 81 B B 31 26 BBB CDP—Climate CDP—Water MSCI Sust
Slide 18: Operating segments
Operating segments Summary State-regulated utility operations Dominion Energy Dominion Energy Contracted Gas Distribution Virginia South Carolina Assets O CT VA H ID W O States of operation Y WV SC H Southeastern UT NC & Mid- UT Atlantic U.S. NC 2022 operating ~57% ~18% ~14% ~10% earnings contributi
Slide 19: Investing in support of our clean-energy profile
Investing in support of our clean-energy profile Five-year growth capital ~$37B 59% $22B Zero-carbon generation & energy storage¹ ~87% Emissions reduction and 18% $7B Electric grid transformation² enabling investments 10% $3B Gas distribution modernization / RNG 13% $5B Customer growth & other 2022
Slide 20: Environment
Environment Material emissions reductions as zero-carbon generation displaces emitting technologies Owned generation dispatch (MWh) Enterprise-wide CO2e¹ by fuel type² Coal Gas Zero-carbon 42%↓ 37% 49% ~70%— ~99% 7% 80%↓ Net Zero 76% zero & low (conforms to 1.5o emitting Paris Accord 40% Goals4) 52%
Slide 21: Customers
Customers State-regulated utilities Segment summary as of 3/31/2022 State summary Three months ended DE Customers March 31 South Carolina 3/31/2022 (M) Gas Distribution ‘20-’22 CAGR 1.2M 3.1M 17% DE Virginia 1.3% 2.7 44% DE South Carolina 2.6% 1.2 Electric 2.0% 0.8 Gas 3.6% 0.4 7.0M state utility Ga
Slide 22: Weather: degree days
Weather Degree days Quarter ended 3/31 2022 2021 Actual 1,895 1,889 Heating Normal 1,973 1,970 Dominion Energy Virginia Actual 11 11 Electric Cooling Normal 5 5 Actual 750 786 Heating Dominion Energy South Normal 780 779 Carolina Actual 0 1 Cooling Normal 0 0 Actual 750 786 SC Normal 780 779 Actual
Slide 23: Weather after-tax impacts
Weather After-tax impacts ($M) Q1 Q2 Q3 Q4 2022 YTD Dominion Energy Virginia2 $4 – – – $4 Versus normal¹ Dominion Energy South 4 – – – 4 Carolina3 Gas Distribution4 1 – – – 1 Total $9 – – – $9 Q1 Q2 Q3 Q4 2022 YTD Dominion Energy Virginia2 $14 – – – $14 Versus prior year¹ Dominion Energy South 1 – –
Slide 24: Consolidated financial outlook: equity capital raising
Consolidated financial outlook Equity capital raising activities¹ Annual issuance ($B) Dividend reinvestment At-the-market Total (“DRIP”) (“ATM”) 2022E $0.2B $0.1—0.3B $0.3—0.5B 2023E – 2026E 0.2B 0.5—0.7B 0.7—0.9B All equity needs planned within existing DRIP and ATM programs; no block or marketed
Slide 25: 2022 fixed income financing activities
Consolidated financial outlook 2022 fixed income financing activities ($B)¹ Issuance range Issued To Come Dominion Energy Virginia $2.0—$2.5 $1.0 $1.0—$1.5 Gas Distribution $0.2—$0.4 – $0.2—$0.4 Dominion Energy South Carolina – – – Contracted Assets – – – DEI $1.0—$1.5 – $1.0—$1.5 Total $3.2—$4.4 $1
Slide 26: Fixed income: long-term debt schedule
Fixed income Preliminary and unaudited schedule of long-term debt as of March 31, 2022 ($M) Segment Financing Entity Description Maturity Weighted Avg. Rate Short-term at 3/31/2022 Long-term at 3/31/2022 DE Virginia VEPCO Unsecured Senior Notes, fixed rates 2022-2051 3.97% $1,000 $13,235 DE Virginia
Slide 27: Fixed income: debt maturities
Fixed income Schedule of debt maturities as of March 31, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2022 3.45% 2010 Series A Senior Notes 09/01/22 VEPCO 300 - - - - 300 2.75% 2012 Series B Senior Notes 09/15/22 DEI - - - - 350 350 Sinks of va
Slide 28: Fixed income: debt maturities
Fixed income Schedule of debt maturities as of March 31, 2022 ($M) Financing Segment Due Date Entity DE Virginia Gas Dist DE SC Con Assets Corp & Other Total 2025 3.30% 2020 Series A Senior Notes 03/15/25 DEI - - - - 400 400 3.10% 2015 Series A Senior Notes 05/15/25 VEPCO 350 - - - - 350 1.30% 2020
Slide 29: 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 30: Fixed income: credit ratings (cont'd)
Fixed income Credit Ratings (cont’d) East Ohio Gas Co. Moody’s S&P Fitch Corporate/Issuer A2 BBB+ A- Senior Unsecured Debt Securities A2 BBB+ A Outlook Stable Positive Negative 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 Ou