Earnings Per Share

9 Months Ended

Sep. 30, 2022

Note 6. Earnings Per Share

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations	$	781		$	589		$	1,021		$	1,828
Preferred stock dividends (see Note 16)		(20	)		(16	)		(72	)		(48	)
Net income attributable to Dominion Energy from continuing operations – Basic		761			573			949			1,780
Dilutive effect of 2019 Equity Units ⁽¹⁾		—			—			12			—
Net income attributable to Dominion Energy from continuing operations - Diluted	$	761		$	573		$	961		$	1,780
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted	$	(3	)	$	65		$	15		$	119

Average shares of common stock outstanding – Basic		832.6			808.7			820.6			807.1
Net effect of dilutive securities ⁽²⁾		0.6			1.3			12.1			0.5
Average shares of common stock outstanding – Diluted		833.2			810.0			832.7			807.6

EPS from continuing operations – Basic	$	0.91		$	0.71		$	1.16		$	2.20
EPS from discontinued operations – Basic		—			0.08			0.02			0.15
EPS attributable to Dominion Energy – Basic	$	0.91		$	0.79		$	1.18		$	2.35

EPS from continuing operations – Diluted	$	0.91		$	0.71		$	1.15		$	2.20
EPS from discontinued operations – Diluted		—			0.08			0.02			0.15
EPS attributable to Dominion Energy – Diluted	$	0.91		$	0.79		$	1.17		$	2.35

(1)

As discussed in Note 16, effective in June 2022 through its settlement in September 2022, the Series A Preferred Stock was considered to be mandatorily redeemable and was classified in current liabilities. In accordance with revised accounting standards effective January 2022, a fair value adjustment, if dilutive, of the Series A Preferred Stock was no longer included in applying the if converted method to the 2019 Equity Units. In addition, diluted net income was no longer reduced by the Series A Preferred Stock dividends. No fair value adjustment was necessary for the three and nine months ended September 30, 2021.

(2)

Dilutive securities for the three and nine months ended September 30, 2022 consist primarily of the 2019 Equity Units through their settlement in June 2022 (applying the if converted method as updated effective January 2022), stock potentially to be issued to satisfy the obligation under a settlement agreement with the SCDOR (applying the if converted method) as well as forward sales agreements entered into in November 2021 (applying the treasury stock method). See Notes 16 and 17 for additional information.

The 2019 Equity Units, prior to settlement in June 2022, and the Q-Pipe Transaction deposit, prior to being settled in cash in July 2021, were potentially dilutive instruments. See Note 16 to the Consolidated Financial Statements in this report and Note 3 and Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021 for additional information.

For the three and nine months ended September 30, 2021, the forward stock purchase contracts included within the 2019 Equity Units are excluded from the calculation of diluted EPS from continuing operations as the dilutive stock price threshold was not met, the Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations based upon the expectation that the conversion would settle in cash rather than through the issuance of Dominion Energy common stock and a fair value adjustment related to the Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations, as such fair value adjustment was not dilutive during the period.

The impact of settling the deposit associated with the Q-Pipe Transaction in shares is excluded from the calculation of diluted EPS from continuing operations for the three and nine months ended September 30, 2021 based upon the expectation Dominion Energy would settle in cash, which occurred in July 2021, rather than through the issuance of Dominion Energy common stock.