- Fourth-quarter 2023 GAAP net income of $0.30 per share; operating earnings (non-GAAP) of
$0.29 per share
- Full year 2023 GAAP net income of $2.29 per share; operating earnings (non-GAAP) of
$1.99 per share
- Affirms previously communicated business review commitments
and priorities
- Announces agreement to sell a noncontrolling equity
partnership interest in CVOW in a highly credit positive
transaction that features robust cost and risk-sharing and is
consistent with objectives of the business review
- Provides key project updates on CVOW and affirms on time, on
budget status
- Schedules business review investor meeting for March 1, 2024, to conclude business review and
provide comprehensive update on repositioned strategic and
financial outlook
RICHMOND, Va., Feb. 22,
2024 /PRNewswire/ -- Dominion Energy, Inc. (NYSE: D),
today announced unaudited net income determined in accordance with
Generally Accepted Accounting Principles (GAAP, or reported
earnings) for the three months ended Dec.
31, 2023, of $273 million
($0.30 per share) compared with net
income of $344 million ($0.39 per share) for the same period in 2022,
with net income of $2.0 billion
($2.29 per share) for the 12 months
ended Dec. 31, 2023, compared with
net income of $1.3 billion
($1.49 per share) for the same period
in 2022.
Operating earnings (non-GAAP) for the three months ended
Dec. 31, 2023, were $267 million ($0.29
per share), compared to operating earnings of $652 million ($0.76
per share) for the same period in 2022. Operating earnings
for the 12 months ended Dec. 31,
2023, were $1.7 billion
($1.99 per share) compared with
operating earnings of $2.6 billion
($3.06 per share) for the same period
in 2022.
Differences between GAAP and operating earnings for the period
include a net gain from discontinued operations associated with the
sale of remaining noncontrolling interest in Cove Point and gas
distribution operations, deferred taxes associated with the sale of
gas distribution operations, the gains and losses on nuclear
decommissioning trust funds, mark-to-market impact of economic
hedging activities, and other adjustments. Details of operating
earnings as compared to prior periods, business segment results and
detailed descriptions of items included in reported earnings but
excluded from operating earnings can be found on Schedules 1, 2, 3
and 4 of this release.
Noncontrolling equity financing partner
announced
Dominion Energy has agreed to sell a 50%
noncontrolling interest in the Coastal Virginia Offshore Wind
commercial project (CVOW) to Stonepeak, a leading alternative
investment firm specializing in infrastructure and real assets with
more than $61 billion of assets under
management, through the formation of an offshore wind
partnership. Under the terms of the agreement, Dominion
Energy will retain full operational control of the construction and
operations of CVOW. The transaction is expected to close by the end
of 2024, subject to customary approvals.
Key updates on CVOW
Dominion Energy affirmed the
project's on time and on budget status consistent with previous
communications. Dominion Energy also released a video
featuring senior executive representatives of key suppliers and
partners sharing their commitment to a successful, on time, and on
budget project completion. The video also features updated
video footage of key project components. Featured
representatives include:
- Jochen Eickholt, CEO, Siemens
Gamesa Renewable Energy, supplier of offshore wind turbines
- Robert Dreves, CEO Rostock
Facility, EEW, supplier of monopiles
- Søren Schlott Mikkelsen, COO, Bladt Industries, supplier of
offshore substations and transition pieces
- Steen Brødbæk, CEO, Semco Maritime, supplier of offshore
substations
- Luc Vandenbulcke, CEO, DEME,
transporter, logistics, and installation of monopiles and
transition pieces
- Hakan Ozmen, EVP Transmission
& CEO Powerlink, Prysmian Group, supplier of offshore and
onshore cable
- Chris Ong, CEO, Seatrium,
supplier of Charybdis, a Jones Act compliant offshore wind
installation vehicle (WTIV)
The video can be viewed here and by visiting Dominion Energy's
Investor Relations website.
The 2.6-gigawatt CVOW, the largest offshore wind farm in the
U.S., is on schedule to generate enough clean, renewable energy to
power up to 660,000 homes once fully constructed in late 2026. CVOW
will consist of 176 turbines and three offshore substations in a
nearly 113,000-acre lease area off the coast of Virginia Beach.
Webcast today
The company will host its fourth-quarter
2023 earnings call at 10 a.m. ET on Thursday, Feb. 22, 2024. Management will discuss
matters of interest to financial and other stakeholders including
recent financial results and the agreement to sell a noncontrolling
equity partnership interest in CVOW.
A live webcast of the conference call, including accompanying
slides and other financial information, will be available on the
investor information pages at investors.dominionenergy.com.
For individuals who prefer to join via telephone, domestic
callers should dial 1-800-420-1271 and international callers should
dial 1-785-424-1222. The passcode for the telephonic earnings call
is 49240. Participants should dial in 10 to 15 minutes prior to the
scheduled start time.
A replay of the webcast will be available on the investor
information pages by the end of the day Feb.
22. A telephonic replay of the earnings call will be
available beginning at about 1 p.m.
ET on Feb. 22. Domestic
callers may access the recording by dialing 1-800-839-8292.
International callers should dial 1-402-220-6069. The PIN for the
replay is 49240.
Business review investor event scheduled for March 1, 2024
Dominion Energy will host an
approximately 90 minute investor meeting on Friday, March 1, 2024 at 8:00 a.m. ET. During the investor event,
management will review Dominion Energy's overall strategy, provide
comprehensive and multi-year financial and capital investment
guidance, and participate in Q&A.
The presentation will be available live via online webcast
accessible through the company's investor relations information
pages at investors.dominionenergy.com. Participants will be
given instructions during the presentation on how to submit
questions virtually.
Following the event, the company will initiate a comprehensive
investor engagement program that will allow management to meet with
the company's existing and prospective investors as well as other
stakeholders.
Important note to investors regarding operating, reported
earnings
Dominion Energy uses operating earnings (non-GAAP)
as the primary performance measurement of its results for public
communications with analysts and investors. Operating earnings are
defined as reported earnings adjusted for certain items. Dominion
Energy also uses operating earnings internally for budgeting, for
reporting to the Board of Directors, for the company's incentive
compensation plans, and for its targeted dividend payouts and other
purposes. Dominion Energy management believes operating earnings
provide a more meaningful representation of the company's
fundamental earnings power.
About Dominion Energy
About 7 million customers
in 15 states energize their homes and businesses with electricity
or natural gas from Dominion Energy (NYSE: D), headquartered
in Richmond, Va. The company is committed to providing
reliable, affordable, and increasingly clean energy every day and
to achieving Net Zero emissions by 2050. Please visit
DominionEnergy.com to learn more.
This release contains certain forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that are subject to various risks and
uncertainties. Factors that could cause actual results to differ
include, but are not limited to: the direct and indirect impacts of
implementing recommendations resulting from the business review
announced in November 2022; unusual
weather conditions and their effect on energy sales to customers
and energy commodity prices; extreme weather events and other
natural disasters; extraordinary external events, such as the
pandemic health event resulting from COVID-19; federal, state and
local legislative and regulatory developments; changes to regulated
rates collected by Dominion Energy; timing and receipt of
regulatory approvals necessary for planned construction or
expansion projects and compliance with conditions associated with
such regulatory approvals; the inability to complete planned
construction projects within time frames initially anticipated;
risks and uncertainties that may impact the ability to develop and
construct the Coastal Virginia Offshore Wind (CVOW) Commercial
Project within the currently proposed timeline, or at all, and
consistent with current cost estimates along with the ability to
recover such costs from customers; changes to federal, state and
local environmental laws and regulations, including those related
to climate change; cost of environmental strategy and compliance,
including cost related to climate change; changes in implementation
and enforcement practices of regulators relating to environmental
standards and litigation exposure for remedial activities; changes
in operating, maintenance and construction costs; additional
competition in Dominion Energy's industries; changes in demand for
Dominion Energy's services; receipt of approvals for, and timing
of, closing dates for acquisitions and divestitures; impacts of
acquisitions, divestitures, transfers of assets by Dominion Energy
to joint ventures, and retirements of assets based on asset
portfolio reviews; the expected timing and likelihood of the
completion of the proposed sales of The East Ohio Gas Company,
Public Service Company of North
Carolina, Incorporated, Questar Gas Company, and Wexpro
Company, and their consolidated subsidiaries and related entities,
as applicable, including the ability to obtain the requisite
regulatory approvals and the terms and conditions of such
approvals; the expected timing and likelihood of the completion of
the proposed sale of a 50% noncontrolling interest in the CVOW
Commercial Project, including the ability to obtain the requisite
regulatory approvals and the terms and conditions of such
approvals; adverse outcomes in litigation matters or
regulatory proceedings; fluctuations in interest rates; the
effectiveness to which existing economic hedging instruments
mitigate fluctuations in currency exchange rates of the Euro and
Danish Krone associated with certain fixed price contracts for the
major offshore construction and equipment components of the CVOW
Commercial Project; changes in rating agency requirements or credit
ratings and their effect on availability and cost of capital; and
capital market conditions, including the availability of credit and
the ability to obtain financing on reasonable terms. Other risk
factors are detailed from time to time in Dominion Energy's
quarterly reports on Form 10-Q and most recent annual report on
Form 10-K filed with the U.S. Securities and Exchange
Commission.
|
Consolidated
Statements of Income (GAAP)
|
|
|
Dominion Energy,
Inc.
|
|
|
Consolidated
Statements of Income *
|
|
|
Unaudited (GAAP
Based)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
(millions, except
per share amounts)
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Operating
Revenue
|
$
|
3,534
|
|
|
$
|
3,807
|
|
|
$
|
14,393
|
|
|
$
|
13,938
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric fuel and other
energy-related purchases
|
|
925
|
|
|
|
1,086
|
|
|
|
3,935
|
|
|
|
3,711
|
|
|
Purchased electric
capacity
|
|
12
|
|
|
|
14
|
|
|
|
55
|
|
|
|
59
|
|
|
Purchased
gas
|
|
73
|
|
|
|
95
|
|
|
|
285
|
|
|
|
426
|
|
|
Other operations and
maintenance(1)
|
|
961
|
|
|
|
1,605
|
|
|
|
3,440
|
|
|
|
5,192
|
|
|
Depreciation and
amortization
|
|
684
|
|
|
|
610
|
|
|
|
2,580
|
|
|
|
2,442
|
|
|
Other taxes
|
|
167
|
|
|
|
144
|
|
|
|
684
|
|
|
|
675
|
|
|
Total operating
expenses
|
|
2,822
|
|
|
|
3,554
|
|
|
|
10,979
|
|
|
|
12,505
|
|
|
Income (loss) from
operations
|
|
712
|
|
|
|
253
|
|
|
|
3,414
|
|
|
|
1,433
|
|
|
Other income
(expense)
|
|
346
|
|
|
|
290
|
|
|
|
992
|
|
|
|
109
|
|
|
Interest and related
charges
|
|
608
|
|
|
|
329
|
|
|
|
1,674
|
|
|
|
1,002
|
|
|
Income (loss) from
continuing operations including
noncontrolling interests before income tax
expense (benefit)
|
|
450
|
|
|
|
214
|
|
|
|
2,732
|
|
|
|
540
|
|
|
Income tax expense
(benefit)
|
|
106
|
|
|
|
(8)
|
|
|
|
575
|
|
|
|
113
|
|
|
Net Income (loss)
from continuing operations
|
|
344
|
|
|
|
222
|
|
|
|
2,157
|
|
|
|
427
|
|
|
Net Income (loss) from
discontinued operations
|
|
(71)
|
|
|
|
122
|
|
|
|
(163)
|
|
|
|
894
|
|
|
Net Income (loss)
attributable to Dominion Energy
|
$
|
273
|
|
|
$
|
344
|
|
|
$
|
1,994
|
|
|
$
|
1,321
|
|
|
Reported Income (loss)
per common share from continuing
operations - diluted
|
$
|
0.39
|
|
|
$
|
0.24
|
|
|
$
|
2.48
|
|
|
$
|
0.41
|
|
|
Reported Income (loss)
per common share from discontinued
operations - diluted
|
|
(0.09)
|
|
|
|
0.15
|
|
|
|
(0.19)
|
|
|
|
1.08
|
|
|
Reported Income
(loss) per common share - diluted
|
$
|
0.30
|
|
|
$
|
0.39
|
|
|
$
|
2.29
|
|
|
$
|
1.49
|
|
|
Average shares
outstanding, diluted
|
|
837.3
|
|
|
|
834.1
|
|
|
|
836.5
|
|
|
|
824.8
|
|
|
|
|
(1)
|
Includes impairment of
assets and other charges (benefits) and losses (gains) on sales of
assets.
|
|
*The notes contained in
Dominion Energy's most recent quarterly report on Form 10-Q or
annual report on Form 10-K are an integral part of the Consolidated
Financial Statements.
|
|
|
|
Schedule 1 - Segment
Reported and Operating Earnings
|
|
Unaudited
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months Ended
December 31,
|
|
|
(millions, except per
share amounts)
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
REPORTED
EARNINGS(1)
|
$
|
273
|
|
|
$
|
344
|
|
|
$
|
(71)
|
|
|
$
|
1,994
|
|
|
$
|
1,321
|
|
|
$
|
673
|
|
|
Pre-tax loss
(income)(2)
|
|
1
|
|
|
|
434
|
|
|
|
(433)
|
|
|
|
(1,713)
|
|
|
|
1,624
|
|
|
|
(3,337)
|
|
|
Income
tax(2)
|
|
(7)
|
|
|
|
(126)
|
|
|
|
119
|
|
|
|
1,462
|
|
|
|
(311)
|
|
|
|
1,773
|
|
|
Adjustments to reported
earnings
|
|
(6)
|
|
|
|
308
|
|
|
|
(314)
|
|
|
|
(251)
|
|
|
|
1,313
|
|
|
|
(1,564)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EARNINGS
(non-GAAP)
|
$
|
267
|
|
|
$
|
652
|
|
|
$
|
(385)
|
|
|
$
|
1,743
|
|
|
$
|
2,634
|
|
|
$
|
(891)
|
|
|
By
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Energy
Virginia
|
|
369
|
|
|
|
395
|
|
|
|
(26)
|
|
|
|
1,684
|
|
|
|
1,905
|
|
|
|
(221)
|
|
|
Dominion Energy South
Carolina
|
|
75
|
|
|
|
97
|
|
|
|
(22)
|
|
|
|
377
|
|
|
|
505
|
|
|
|
(128)
|
|
|
Contracted
Energy
|
|
(19)
|
|
|
|
82
|
|
|
|
(101)
|
|
|
|
99
|
|
|
|
188
|
|
|
|
(89)
|
|
|
Corporate and
Other
|
|
(158)
|
|
|
|
78
|
|
|
|
(236)
|
|
|
|
(417)
|
|
|
|
36
|
|
|
|
(453)
|
|
|
$
|
267
|
|
|
$
|
652
|
|
|
$
|
(385)
|
|
|
$
|
1,743
|
|
|
$
|
2,634
|
|
|
$
|
(891)
|
|
|
Earnings Per Share
(EPS)(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED
EARNINGS(1)
|
$
|
0.30
|
|
|
$
|
0.39
|
|
|
$
|
(0.09)
|
|
|
$
|
2.29
|
|
|
$
|
1.49
|
|
|
$
|
0.80
|
|
|
Adjustments to reported
earnings (after-tax)
|
|
(0.01)
|
|
|
|
0.37
|
|
|
|
(0.38)
|
|
|
|
(0.30)
|
|
|
|
1.57
|
|
|
|
(1.87)
|
|
|
OPERATING EARNINGS
(non-GAAP)
|
$
|
0.29
|
|
|
$
|
0.76
|
|
|
$
|
(0.47)
|
|
|
$
|
1.99
|
|
|
$
|
3.06
|
|
|
$
|
(1.07)
|
|
|
By
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Energy
Virginia
|
$
|
0.44
|
|
|
$
|
0.47
|
|
|
$
|
(0.03)
|
|
|
$
|
2.01
|
|
|
$
|
2.31
|
|
|
$
|
(0.30)
|
|
|
Dominion Energy South
Carolina
|
|
0.09
|
|
|
|
0.12
|
|
|
|
(0.03)
|
|
|
|
0.45
|
|
|
|
0.61
|
|
|
|
(0.16)
|
|
|
Contracted
Energy
|
|
(0.02)
|
|
|
|
0.10
|
|
|
|
(0.12)
|
|
|
|
0.12
|
|
|
|
0.23
|
|
|
|
(0.11)
|
|
|
Corporate and
Other
|
|
(0.22)
|
|
|
|
0.07
|
|
|
|
(0.29)
|
|
|
|
(0.59)
|
|
|
|
(0.09)
|
|
|
|
(0.50)
|
|
|
$
|
0.29
|
|
|
$
|
0.76
|
|
|
$
|
(0.47)
|
|
|
$
|
1.99
|
|
|
$
|
3.06
|
|
|
$
|
(1.07)
|
|
|
Common Shares
Outstanding (average, diluted)
|
|
837.3
|
|
|
|
834.1
|
|
|
|
|
|
|
836.5
|
|
|
|
833.0
|
|
|
|
|
|
|
|
(1)
|
Determined in
accordance with Generally Accepted Accounting Principles
(GAAP).
|
|
(2)
|
Adjustments to reported
earnings are included in Corporate and Other segment reported GAAP
earnings. Refer to Schedules 2 and 3 for details or find
"GAAP Reconciliation" in the Earnings Release Kit on Dominion
Energy's website at investors.dominionenergy.com.
|
|
(3)
|
The calculation of
reported and operating earnings per share on a consolidated basis
utilizes shares outstanding on a diluted basis with all dilutive
impacts, primarily consisting of potential shares which had not yet
been issued, reflected in the Corporate and Other segment.
Effective January 2022, the calculation of diluted reported and
operating earnings per share assumes conversion, if dilutive, of
the Series A preferred stock to common stock as of January 1, 2022.
The Series A preferred stock was reclassified to a liability in
June 2022 and redeemed in September 2022. During each quarter of
2023 and 2022, the calculation of reported and operating earnings
per share includes the impact of preferred dividends associated
with preferred stock of $9 million (Series B) and $11 million
(Series C). Reported earnings per share for the twelve months
ended December 31, 2022 also includes the impact of preferred
dividends associated with Series A preferred stock of $12 million.
See Forms 10-Q and 10-K for additional information.
|
|
|
Schedule 2 - Reconciliation of 2023 Reported Earnings to
Operating Earnings
2023 Earnings (Twelve Months Ended
December 31, 2023)
The $1.7 billion pre-tax net
income of the adjustments included in 2023 reported earnings, but
excluded from operating earnings, is primarily related to the
following items:
- $1.1 billion of net benefit from
discontinued operations, primarily related to a $722 million benefit associated with the sale of
the remaining non-controlling interest in Cove Point (including
$626 million net gain on sale) and a
$496 million benefit associated with
the gas distribution operations expected to be sold to Enbridge
Inc. (inclusive of a $334 million
impairment charge associated with the East Ohio and Questar Gas Transactions).
- $1.2 billion net market benefit
primarily associated with $411
million from nuclear decommissioning trusts (NDT) and
$758 million in economic hedging
activities.
- $370 million of regulated asset
retirements and other charges primarily associated with the
settlement of Virginia Power's 2021
triennial review.
- $118 million of nonregulated
asset impairments and other charges primarily related to an ARO
revision at Millstone nuclear power station in connection with the
expected approval of an operating license extension.
|
(millions, except
per share amounts)
|
1Q23
|
|
2Q23
|
|
3Q23
|
|
4Q23
|
|
YTD
2023(5)
|
|
|
Reported
earnings
|
$
|
981
|
|
$
|
583
|
|
$
|
157
|
|
$
|
273
|
|
$
|
1,994
|
|
|
Adjustments to reported
earnings(1):
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss
(income)
|
|
(590)
|
|
|
(346)
|
|
|
(778)
|
|
|
1
|
|
|
(1,713)
|
|
|
Income tax
|
|
124
|
|
|
73
|
|
|
1,272
|
|
|
(7)
|
|
|
1,462
|
|
|
|
(466)
|
|
|
(273)
|
|
|
494
|
|
|
(6)
|
|
|
(251)
|
|
|
Operating earnings
(non-GAAP)
|
$
|
515
|
|
$
|
310
|
|
$
|
651
|
|
$
|
267
|
|
$
|
1,743
|
|
|
Common shares
outstanding (average, diluted)
|
|
835.5
|
|
|
836.2
|
|
|
836.8
|
|
|
837.3
|
|
|
836.5
|
|
|
Reported earnings
per share(2)
|
$
|
1.15
|
|
$
|
0.67
|
|
$
|
0.16
|
|
$
|
0.30
|
|
$
|
2.29
|
|
|
Adjustments to reported
earnings per share(2)
|
|
(0.56)
|
|
|
(0.32)
|
|
|
0.59
|
|
|
(0.01)
|
|
|
(0.30)
|
|
|
Operating earnings
(non-GAAP) per share(2)
|
$
|
0.59
|
|
$
|
0.35
|
|
$
|
0.75
|
|
$
|
0.29
|
|
$
|
1.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments to
reported earnings are reflected in the following
table:
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
2Q23
|
|
3Q23
|
|
4Q23
|
|
YTD
2023
|
|
|
Pre-tax loss
(income):
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
$
|
(337)
|
|
$
|
(206)
|
|
$
|
(683)
|
|
$
|
96
|
|
$
|
(1,130)
|
|
|
Net loss (gain) on NDT
funds
|
|
(123)
|
|
|
(158)
|
|
|
98
|
|
|
(228)
|
|
|
(411)
|
|
|
Mark-to-market impact
of economic hedging activities
|
|
(272)
|
|
|
(58)
|
|
|
(287)
|
|
|
(141)
|
|
|
(758)
|
|
|
Regulated asset
retirements and other charges
|
|
61
|
|
|
97
|
|
|
61
|
|
|
151
|
|
|
370
|
|
|
Nonregulated asset
impairments and other charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
118
|
|
|
118
|
|
|
Net loss (gain) on real
estate dispositions
|
|
81
|
|
|
(21)
|
|
|
16
|
|
|
(5)
|
|
|
71
|
|
|
Storm damage and
restoration costs (income)
|
|
-
|
|
|
-
|
|
|
12
|
|
|
(2)
|
|
|
10
|
|
|
Business review
costs
|
|
-
|
|
|
-
|
|
|
5
|
|
|
12
|
|
|
17
|
|
|
$
|
(590)
|
|
$
|
(346)
|
|
$
|
(778)
|
|
$
|
1
|
|
$
|
(1,713)
|
|
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of above
adjustments to reported earnings(3)
|
|
124
|
|
|
73
|
|
|
333
|
|
|
107
|
|
|
637
|
|
|
Deferred taxes
associated with sale of gas distribution
operations(4)
|
|
-
|
|
|
-
|
|
|
939
|
|
|
(114)
|
|
|
825
|
|
|
$
|
124
|
|
$
|
73
|
|
$
|
1,272
|
|
$
|
(7)
|
|
$
|
1,462
|
|
|
|
|
(2)
|
The calculation of
reported and operating earnings per share on a consolidated basis
utilizes shares outstanding on a diluted basis with all dilutive
impacts, primarily consisting of potential shares which had not yet
been issued, reflected in the Corporate and Other segment. During
each quarter of 2023, the calculation of reported and operating
earnings per share includes the impact of preferred dividends
associated with preferred stock of $9 million (Series B) and $11
million (Series C). See Forms 10-Q and 10-K for additional
information.
|
|
(3)
|
Income taxes for
individual pre-tax items include current and deferred taxes using a
transactional effective tax rate. For interim reporting purposes,
calculation of such amounts may be adjusted in connection with the
calculation of the Company's year-to-date income tax provision
based on its estimated annual effective tax rate.
|
|
(4)
|
Represents deferred
taxes related to the basis in the stock of the gas distribution
operations expected to be sold to Enbridge that will reverse
upon the completion of each sale.
|
|
(5)
|
YTD EPS may not equal
sum of quarters due to share count difference.
|
|
|
Schedule 3 - Reconciliation of 2022 Reported Earnings to
Operating Earnings
2022 Earnings (Twelve months ended
December 31, 2022)
The $1.6 billion pre-tax net loss
of the adjustments included in 2022 reported earnings, but excluded
from operating earnings, is primarily related to the following
items:
- $1.1 billion of net benefit from
discontinued operations, primarily related to $436 million associated with the sale of the
remaining non-controlling interest in Cove Point and $745 million associated with the gas distribution
operations expected to be sold to Enbridge.
- $282 million net market loss
associated with $559 million from
nuclear decommissioning trusts offset by $277 million in economic hedging activities.
- $851 million charge associated
with the impairment of certain nonregulated solar generation
facilities.
- $830 million of regulated asset
retirements and other charges, including $404M of charges for certain Virginia Power fuel and Regional Greenhouse Gas
Initiative (RGGI) compliance costs deemed recovered through base
rates, $243 million associated with
the settlement of Virginia Power's
2021 triennial review and $167
million for dismantling costs associated with the early
retirement of certain Virginia Power
fossil-fuel generation facilities.
- $649 million loss associated with
the sale of Kewaunee nuclear power station.
- $125 million of storm damage and
restoration costs.
|
(millions, except
per share amounts)
|
1Q22
|
|
2Q22
|
|
3Q22
|
|
4Q22
|
|
YTD
2022(6)
|
|
|
Reported
earnings
|
$
|
689
|
|
$
|
(447)
|
|
$
|
735
|
|
$
|
344
|
|
$
|
1,321
|
|
|
Adjustments to reported
earnings(1):
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss
(income)
|
|
(124)
|
|
|
1,203
|
|
|
111
|
|
|
434
|
|
|
1,624
|
|
|
Income tax
|
|
104
|
|
|
(262)
|
|
|
(27)
|
|
|
(126)
|
|
|
(311)
|
|
|
|
(20)
|
|
|
941
|
|
|
84
|
|
|
308
|
|
|
1,313
|
|
|
Operating earnings
(non-GAAP)
|
$
|
669
|
|
$
|
494
|
|
$
|
819
|
|
$
|
652
|
|
$
|
2,634
|
|
|
Common shares
outstanding (average, diluted)
|
|
832.0
|
|
|
832.5
|
|
|
833.2
|
|
|
834.1
|
|
|
833.0
|
|
|
Reported earnings
per share(2)
|
$
|
0.81
|
|
$
|
(0.58)
|
|
$
|
0.86
|
|
$
|
0.39
|
|
$
|
1.49
|
|
|
Adjustments to reported
earnings per share(2)
|
|
(0.03)
|
|
|
1.15
|
|
|
0.10
|
|
|
0.37
|
|
|
1.57
|
|
|
Operating earnings
(non-GAAP) per share(2)
|
$
|
0.78
|
|
$
|
0.57
|
|
$
|
0.96
|
|
$
|
0.76
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments to
reported earnings are reflected in the following
table:
|
|
|
|
|
|
|
|
|
|
|
1Q22
|
|
2Q22
|
|
3Q22
|
|
4Q22
|
|
YTD
2022
|
|
|
Pre-tax loss
(income):
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
$
|
(510)
|
|
$
|
(244)
|
|
$
|
(203)
|
|
$
|
(134)
|
|
$
|
(1,091)
|
|
|
Net loss (gain) on NDT
funds
|
|
125
|
|
|
454
|
|
|
112
|
|
|
(132)
|
|
|
559
|
|
|
Mark-to-market impact
of economic hedging activities
|
|
102
|
|
|
(126)
|
|
|
107
|
|
|
(360)
|
|
|
(277)
|
|
|
Nonregulated asset
impairments and other charges(3)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
851
|
|
|
851
|
|
|
Regulated asset
retirements and other charges
|
|
65
|
|
|
470
|
|
|
112
|
|
|
183
|
|
|
830
|
|
|
Sale of
Kewaunee
|
|
-
|
|
|
649
|
|
|
-
|
|
|
-
|
|
|
649
|
|
|
Storm damage and
restoration costs
|
|
94
|
|
|
-
|
|
|
-
|
|
|
31
|
|
|
125
|
|
|
Sale of Hope Gas,
Inc.
|
|
-
|
|
|
-
|
|
|
(17)
|
|
|
(5)
|
|
|
(22)
|
|
|
$
|
(124)
|
|
$
|
1,203
|
|
$
|
111
|
|
$
|
434
|
|
$
|
1,624
|
|
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of above
adjustments to reported earnings(4)
|
|
17
|
|
|
(265)
|
|
|
63
|
|
|
(126)
|
|
|
(311)
|
|
|
Deferred taxes
associated with Hope Gas, Inc. divestiture(5)
|
|
87
|
|
|
3
|
|
|
(90)
|
|
|
-
|
|
|
-
|
|
|
$
|
104
|
|
$
|
(262)
|
|
$
|
(27)
|
|
$
|
(126)
|
|
$
|
(311)
|
|
|
|
|
(2)
|
The calculation of
reported and operating earnings per share on a consolidated basis
utilizes shares outstanding on a diluted basis with all dilutive
impacts, primarily consisting of potential shares which had not yet
been issued, reflected in the Corporate and Other segment. As a
result of reported net loss for the three months ended June 30, any
adjustments to earnings or shares would be
considered antidilutive and are excluded from the calculation
of diluted earnings per share. Effective January 2022, the
calculation of diluted reported and operating earnings per share
assumes conversion, if dilutive, of the Series A preferred stock to
common stock as of January 1, 2022. The Series A preferred stock
was reclassified to a liability in June 2022 and redeemed in
September 2022. During each quarter of 2022, the calculation of
reported and operating earnings per share includes the impact of
preferred dividends associated with preferred stock of $9 million
(Series B) and $11 million (Series C, issued in December 2021).
Reported earnings per share for the three months ended June 30,
2022 and the twelve months ended December 31, 2022 also includes
the impact of preferred dividends associated with Series A
preferred stock of $5 million and $12 million, respectively. See
Forms 10-Q and 10-K for additional information.
|
|
(3)
|
In the fourth quarter
of 2022, Dominion Energy determined that its nonregulated
solar generation assets within the Contracted Assets segment were
impaired following the determination that it expects it is more
likely than not such assets will be sold before the end of their
useful lives.
|
|
(4)
|
Income taxes for
individual pre-tax items include current and deferred taxes using a
transactional effective tax rate. For interim reporting purposes,
calculation of such amounts may be adjusted in connection with the
calculation of the Company's year-to-date income tax provision
based on its estimated annual effective tax rate.
|
|
(5)
|
Represents deferred
taxes related to the basis in Hope Gas, Inc.'s stock that reversed
when the sale closed in the third quarter of 2022. This charge is
reflected as a component of current income tax expense on the sale
in the third quarter of 2022.
|
|
(6)
|
YTD EPS may not equal
sum of quarters due to share count difference.
|
|
Schedule 4 -
Reconciliation of 2023 Earnings to 2022
|
|
Preliminary,
Unaudited
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2023 vs.
2022
|
|
|
2023 vs.
2022
|
|
|
(millions, except
per share amounts)
|
Increase /
(Decrease)
|
|
|
Increase /
(Decrease)
|
|
|
Reconciling
Items
|
Amount
|
|
|
EPS
|
|
|
Amount
|
|
|
EPS
|
|
|
Change in reported
earnings (GAAP)
|
$
|
(71)
|
|
|
$
|
(0.09)
|
|
|
$
|
673
|
|
|
$
|
0.80
|
|
|
Change in Pre-tax loss
(income)(1)
|
|
(433)
|
|
|
|
(0.52)
|
|
|
|
(3,337)
|
|
|
|
(3.99)
|
|
|
Change in Income
tax(1)
|
|
119
|
|
|
|
0.14
|
|
|
|
1,773
|
|
|
|
2.12
|
|
|
Adjustments to
reported earnings
|
$
|
(314)
|
|
|
$
|
(0.38)
|
|
|
$
|
(1,564)
|
|
|
$
|
(1.87)
|
|
|
Change in
consolidated operating earnings (non-GAAP)
|
$
|
(385)
|
|
|
$
|
(0.47)
|
|
|
$
|
(891)
|
|
|
$
|
(1.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Energy
Virginia
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather
|
$
|
(20)
|
|
|
$
|
(0.02)
|
|
|
$
|
(126)
|
|
|
$
|
(0.15)
|
|
|
Customer usage and
other factors
|
|
31
|
|
|
|
0.04
|
|
|
|
123
|
|
|
|
0.15
|
|
|
Customer-elected rate
impacts
|
|
2
|
|
|
|
-
|
|
|
|
(64)
|
|
|
|
(0.08)
|
|
|
Rider equity
return
|
|
63
|
|
|
|
0.08
|
|
|
|
146
|
|
|
|
0.18
|
|
|
Impact of 2023 Virginia
legislation
|
|
(69)
|
|
|
|
(0.08)
|
|
|
|
(155)
|
|
|
|
(0.19)
|
|
|
Storm damage and
restoration costs
|
|
10
|
|
|
|
0.01
|
|
|
|
12
|
|
|
|
0.01
|
|
|
Depreciation and
amortization
|
|
(6)
|
|
|
|
(0.01)
|
|
|
|
(27)
|
|
|
|
(0.03)
|
|
|
Renewable energy
investment tax credits
|
|
(6)
|
|
|
|
(0.01)
|
|
|
|
(17)
|
|
|
|
(0.02)
|
|
|
Interest expense,
net
|
|
2
|
|
|
|
-
|
|
|
|
(38)
|
|
|
|
(0.05)
|
|
|
Other
|
|
(33)
|
|
|
|
(0.04)
|
|
|
|
(75)
|
|
|
|
(0.09)
|
|
|
Share
dilution
|
|
|
|
|
-
|
|
|
|
|
|
|
(0.03)
|
|
|
Change in
contribution to operating earnings
|
$
|
(26)
|
|
|
$
|
(0.03)
|
|
|
$
|
(221)
|
|
|
$
|
(0.30)
|
|
|
Dominion Energy
South Carolina
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather
|
$
|
(3)
|
|
|
$
|
-
|
|
|
$
|
(34)
|
|
|
$
|
(0.04)
|
|
|
Customer usage and
other factors
|
|
3
|
|
|
|
-
|
|
|
|
11
|
|
|
|
0.01
|
|
|
Customer-elected rate
impacts
|
|
(8)
|
|
|
|
(0.01)
|
|
|
|
(37)
|
|
|
|
(0.04)
|
|
|
Base & RSA rate
case impacts
|
|
(2)
|
|
|
|
-
|
|
|
|
5
|
|
|
|
0.01
|
|
|
Gains on sales of
property
|
|
(6)
|
|
|
|
(0.01)
|
|
|
|
(32)
|
|
|
|
(0.04)
|
|
|
Depreciation and
amortization
|
|
(5)
|
|
|
|
(0.01)
|
|
|
|
(18)
|
|
|
|
(0.02)
|
|
|
Interest expense,
net
|
|
(5)
|
|
|
|
(0.01)
|
|
|
|
(25)
|
|
|
|
(0.03)
|
|
|
Other
|
|
4
|
|
|
|
0.01
|
|
|
|
2
|
|
|
|
(0.01)
|
|
|
Share
dilution
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
Change in
contribution to operating earnings
|
$
|
(22)
|
|
|
$
|
(0.03)
|
|
|
$
|
(128)
|
|
|
$
|
(0.16)
|
|
|
Contracted
Energy
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin
|
$
|
18
|
|
|
$
|
0.02
|
|
|
$
|
83
|
|
|
$
|
0.10
|
|
|
Planned Millstone
outages(2)(3)
|
|
(105)
|
|
|
|
(0.13)
|
|
|
|
(111)
|
|
|
|
(0.13)
|
|
|
Unplanned Millstone
outages(2)
|
|
(10)
|
|
|
|
(0.01)
|
|
|
|
(52)
|
|
|
|
(0.06)
|
|
|
Depreciation and
amortization
|
|
5
|
|
|
|
0.01
|
|
|
|
14
|
|
|
|
0.02
|
|
|
Other
|
|
(9)
|
|
|
|
(0.01)
|
|
|
|
(23)
|
|
|
|
(0.04)
|
|
|
Share
dilution
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
Change in
contribution to operating earnings
|
$
|
(101)
|
|
|
$
|
(0.12)
|
|
|
$
|
(89)
|
|
|
$
|
(0.11)
|
|
|
Corporate and
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
$
|
(81)
|
|
|
$
|
(0.10)
|
|
|
$
|
(232)
|
|
|
$
|
(0.28)
|
|
|
Equity method
investments(4)
|
|
(100)
|
|
|
|
(0.12)
|
|
|
|
(132)
|
|
|
|
(0.16)
|
|
|
Pension and other
postretirement benefit plans
|
|
5
|
|
|
|
0.01
|
|
|
|
8
|
|
|
|
0.01
|
|
|
Corporate service
company costs
|
|
(4)
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
Other
|
|
(56)
|
|
|
|
(0.09)
|
|
|
|
(98)
|
|
|
|
(0.10)
|
|
|
Share
dilution
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.03
|
|
|
Change in
contribution to operating earnings
|
$
|
(236)
|
|
|
$
|
(0.29)
|
|
|
$
|
(453)
|
|
|
$
|
(0.50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
consolidated operating earnings (non-GAAP)
|
$
|
(385)
|
|
|
$
|
(0.47)
|
|
|
$
|
(891)
|
|
|
$
|
(1.07)
|
|
|
Change in
adjustments included in reported
earnings(1)
|
$
|
314
|
|
|
$
|
0.38
|
|
|
$
|
1,564
|
|
|
$
|
1.87
|
|
|
Change in
consolidated reported earnings
|
$
|
(71)
|
|
|
$
|
(0.09)
|
|
|
$
|
673
|
|
|
$
|
0.80
|
|
|
|
|
(1)
|
Adjustments to reported
earnings are included in Corporate and Other segment reported GAAP
earnings. Refer to Schedules 2 and 3 for details, or find "GAAP
Reconciliation" in the Earnings Release Kit on Dominion Energy's
website at investors.dominionenergy.com.
|
|
(2)
|
Includes earnings
impact from outage costs and lower energy margins.
|
|
(3)
|
Includes the effect of
two planned refueling outages during 2023 as compared to one
planned outage in 2022.
|
|
(4)
|
Includes the impact of
the absence of a gain on the contribution of certain privatization
operations to Dominion Privatization.
|
|
NOTE: Figures may not
sum due to rounding.
|
View original
content:https://www.prnewswire.com/news-releases/dominion-energy-announces-fourth-quarter-and-full-year-2023-earnings-provides-key-updates-on-coastal-virginia-offshore-wind-and-schedules-investor-meeting-to-conclude-business-review-302068322.html
SOURCE Dominion Energy
