EX-99.3 6 d823449dex993.htm EX-99.3 EX-99.3

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Exhibit 99.3 Excerpt From Dominion Energy, Inc. Presentation Slides Dated November 2019


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Dominion Energy Gas Transmission & Storage UT CO WY OH GA SC NC VA PA NY WV Gas pipelines & storage, import/export Updated reporting segments: Overview States of operation 2020E operating earnings contribution Description Dominion Energy Virginia Dominion Energy Contracted Generation Dominion Energy Gas Distribution VA NC OH UT WY WV NC ID CT MD 40%—45% 10%—15% 25%— 30% <10% CT UT CA IN Southeast U.S. Electric distribution, transmission, & generation Gas distribution Millstone and long-term contracted solar Dominion Energy South Carolina 10%—15% Electric distribution, transmission, generation & gas distribution SC Business updates Note: Updated reporting segments expected to be complete by year-end 2019


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Updated reporting segments: Financing structure overview Business updates Dominion Energy Gas Transmission & Storage Dominion Energy Virginia Contracted Generation Dominion Energy South Carolina Dominion Energy (DEI) VEPCO Cove Point Questar Pipeline Carolina Gas Iroquois (50%) ACP DEO Questar Gas PSNC DE Hope DETI DESC Millstone Solar Outline denotes existing financing at asset/business level Dominion Energy Gas Distribution New DEGH Dominion Energy ratings targets: HoldCos: High-BBB range OpCos: A range Short-term: Committed to A2/P2/F2 at parent


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DEGH as of 9/30/19 Updated reporting segments: Financing DEGH today Business updates Dominion Energy Transmission (DETI) Dominion Energy Gas Holdings (DEGH) is an existing financing entity DEGH will become the primary financing vehicle for the new Dominion Energy Gas Transmission & Storage segment Asset additions to DEGH: Cove Point (75% & unlevered) Questar Pipeline Carolina Gas Transmission Iroquois (25%) Asset subtractions from DEGH: Dominion Energy East Ohio (+/-) adjustments Dominion Energy East Ohio (DEO) Iroquois (25%) (+) Cove Point (75% & unlevered) (+) Questar Pipeline (+) Carolina Gas Transmission (+) Iroquois (25%) (-) Dominion Energy East Ohio (DEO) Dominion Energy Transmission (DETI) Cove Point (75% & unlevered) Questar Pipeline Carolina Gas Transmission Iroquois (50%) Commentary Changes to DEGH


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Updated reporting segments: Financing Business updates Do these modifications change your existing DEGH 2019 financing plans of $500—$700M? We now expect long-term debt issuance of $1.2 to $1.8B during Q4 2019 What is status of the existing Cove Point-related $3B term loan? Debt currently resides outside of DEGH Expect to repay near year-end with proceeds from DEGH offering and Cove Point recapitalization proceeds How will Dominion Energy consolidated debt change by year-end vs. Q3 balances? Expect lower total debt by up to ~$2B How will DEO be financed in the future? Does it have any third-party debt today? DEO doesn’t have any third-party debt today though we expect some form of standalone financing during 2020 Q&A As of 9/30/19 Expected (by 12/31/19) DEGH-level LT debt $4.1B ~$4.8B—$5.4B¹ DEGH-level comm. paper 0.3B 0.3B Asset-level debt — 0.4B² Total debt $4.3B ~$5.5—$6.1B EBITDA³ LTM: ~$0.9B 2020E: ~$1.5B Total debt to EBITDA LTM: ~5x 2020E: ~4x Target equity capitalization 50%+ Serves as regulatory reference balance sheet ¹ Based on LT debt of $4.1B at 9/30/19 plus illustrative new issuance of $1.2B to $1.8B less LT debt retirements of ~$450M by year-end ² Includes $430M of existing Questar Pipeline private placement notes ³ See slide 26 for additional information regarding non-GAAP estimate and reconciliation to GAAP DEGH financial statistics


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New DEGH Business updates Estimated 2020E EBITDA contribution by asset 2020E EBITDA: ~$1.5 billion² Cove Point¹ DETI Questar Pipeline Iroquois Carolina Gas Highlights Aligns financing and reporting segments: Improved balance sheet management and transparency Increased scale: EBITDA up by 60%+ Enhanced diversity: Business + geography Best-in-class asset portfolio 100% regulated + “like” Demand-pull, utility-centric customer profile De minimus commodity exposure 10+ year remaining contract life Strong IG counterparties ¹ Includes import/export/storage/pipeline ² See slide 26 for additional information regarding non-GAAP estimate


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New DEGH Business updates Note: Remaining contract terms as of 1/1/2019 ¹ Includes import/export/storage/pipeline FERC gas pipelines and storage (55%) Cove Point¹ (45%) Demand-pull utility customer base No direct commodity exposure ~7 year remaining contract life Demand-pull international utility offtake No direct commodity exposure 19 year remaining export take-or-pay “tolling” contracts with full parent guarantees 100% Regulated / regulated-like, long-term contracted assets with de minimus commodity exposure Expected EBITDA contribution Attractive business risk profile


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New DEGH Business updates Revenue mix by customer profile ~80% demand pull by revenue Commentary ~95% pipeline capacity contracted ~100% storage capacity contracted 100% of import/export contracted (20-year take-or-pay contracts with IG international utilities) Dominion Energy LDC affiliates represent the largest customers for Questar Pipeline and Carolina Gas ¹ Represents Tokyo Gas, Kansai Electric, and GAIL India as customers of Cove Point liquefaction


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New DEGH Business updates Regulation Historically stable cash flows Attractive customer and contract profile Commodity exposure Geographic diversity Description Cove Point ü ü û ü ü ü ü û Carolina Gas Iroquois Questar Pipeline û û ü ü FERC FERC FERC FERC International Southeast Northeast West LNG import / Export/LNG Transmission Natural gas transmission Natural gas transmission Natural gas transmission / storage DETI Natural gas transmission/storage FERC ü ü û Northeast Attractive diverse and contracted assets with no commodity exposure


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Appendix


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($M) 12 months as of 12/31/2018 Less: 9 months as of 9/30/2018 Plus: 9 months as of 9/30/2019 Equals: LTM as of 9/30/2019 Net income $301 $317 $255 $239 Plus: income tax expense 86 111 73 48 Plus: interest and related charges 105 79 77 103 Plus: depreciation and amortization 244 173 188 259 Plus: impairment of assets and other charges 346 127 13 232 Less: gain on sales of assets (119) (116) (7) (10) Equals: EBITDA $963 $691 $599 $871 DEGH EBITDA (last twelve months (“LTM”) as of 9/30/2019 FY 2020E EBITDA expectations Reconciliation of net income to EBITDA as projected for full-year 2020 is not provided. We do not forecast net income as we cannot, without unreasonable efforts, estimate or predict with certainty the components of net income. These components, net of tax, may include, but are not limited to, impairments of assets and other charges, divesture costs, acquisition costs, or changes in accounting principles. All of these components could significantly impact such financial measures. At this time, management is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, we are not able to provide a corresponding GAAP equivalent for EBITDA. Appendix Reconciliation of measures prepared in accordance with Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures Note: LTM and 9 months as of 9/30/2019 EBITDA figures include the impact of an approximate $75M pre-tax non-reoccurring charge related to the Voluntary Retirement Program or VRP