Virginia
(State or other jurisdiction
of incorporation)
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001-08489
(Commission
File Number)
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54-1229715
(IRS Employer
Identification No.)
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120 Tredegar Street
Richmond, Virginia
(Address of Principal Executive Offices)
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23219
(Zip Code)
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Exhibit
|
|
99
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Dominion Resources, Inc. press release dated July 28, 2011
|
DOMINION RESOURCES, INC.
Registrant
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/s/Carter M. Reid
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Carter M. Reid
Vice President, General Counsel & Corporate Secretary
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FOR IMMEDIATE RELEASE
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July 28, 2011
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Company:
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Dominion
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Contacts:
|
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Media:
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Ryan Frazier (804) 819-2521, C.Ryan.Frazier@dom.com
Bill Hall (804) 819-2040, Bill.Hall@dom.com
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Analysts:
|
Corynne Arnett (804) 819-2384, Corynne.Arnett@dom.com
Nathan Frost (804) 819-2187, Nathan.J.Frost@dom.com
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· Second-quarter 2011 operating earnings of 59 cents per share compared to guidance of 50 cents to 60 cents per share
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· Second-quarter 2011 GAAP earnings of 58 cents per share
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· Company affirms 2011 operating earnings guidance of $3.00 to $3.30 per share
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· Conference call scheduled for 10 a.m. EDT today
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Schedule 1 - Segment Operating Earnings
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||||||||
Preliminary, Unaudited
|
||||||||
(millions, except earnings per share)
|
Three months ended June 30
|
|||||||
2011
|
2010
|
Change
|
||||||
Operating Revenue (GAAP Based 1)
|
$ 3,341
|
$ 3,333
|
$ 8
|
|||||
Earnings:
|
||||||||
Dominion Virginia Power
|
$ 115
|
$ 112
|
$ 3
|
|||||
Dominion Energy
|
104
|
86
|
18
|
|||||
Dominion Generation
|
194
|
276
|
(82)
|
|||||
Corporate and Other
|
(75)
|
(48)
|
(27)
|
|||||
OPERATING EARNINGS
|
$ 338
|
$ 426
|
$ (88)
|
|||||
Items excluded from operating earnings 2, 3
|
(2)
|
1,335
|
(1,337)
|
|||||
REPORTED EARNINGS 1
|
$ 336
|
$ 1,761
|
$ (1,425)
|
|||||
Common Shares Outstanding (average, diluted)
|
575.2
|
591.4
|
||||||
Earnings Per Share (EPS):
|
||||||||
Dominion Virginia Power
|
$ 0.20
|
$ 0.19
|
$ 0.01
|
|||||
Dominion Energy
|
0.18
|
0.14
|
0.04
|
|||||
Dominion Generation
|
0.34
|
0.47
|
(0.13)
|
|||||
Corporate and Other
|
(0.13)
|
(0.08)
|
(0.05)
|
|||||
OPERATING EARNINGS
|
$ 0.59
|
$ 0.72
|
$ (0.13)
|
|||||
Items excluded from operating earnings 2
|
(0.01)
|
2.26
|
(2.27)
|
|||||
REPORTED EARNINGS 1
|
$ 0.58
|
$ 2.98
|
$ (2.40)
|
|||||
(millions, except earnings per share)
|
Six months ended June 30
|
|||||||
2011
|
2010
|
Change
|
||||||
Operating Revenue (GAAP Based 1)
|
$ 7,398
|
$ 7,501
|
$ (103)
|
|||||
Earnings:
|
||||||||
Dominion Virginia Power
|
$ 264
|
$ 226
|
$ 38
|
|||||
Dominion Energy
|
273
|
261
|
12
|
|||||
Dominion Generation
|
492
|
601
|
(109)
|
|||||
Corporate and Other
|
(150)
|
(86)
|
(64)
|
|||||
OPERATING EARNINGS
|
$ 879
|
$ 1,002
|
$ (123)
|
|||||
Items excluded from operating earnings 2, 4
|
(64)
|
933
|
(997)
|
|||||
REPORTED EARNINGS 1
|
$ 815
|
$ 1,935
|
$ (1,120)
|
|||||
Common Shares Outstanding (average, diluted)
|
577.9
|
596.1
|
||||||
Earnings Per Share (EPS):
|
||||||||
Dominion Virginia Power
|
$ 0.46
|
$ 0.38
|
$ 0.08
|
|||||
Dominion Energy
|
0.47
|
0.44
|
0.03
|
|||||
Dominion Generation
|
0.85
|
1.01
|
(0.16)
|
|||||
Corporate and Other
|
(0.26)
|
(0.15)
|
(0.11)
|
|||||
OPERATING EARNINGS
|
$ 1.52
|
$ 1.68
|
$ (0.16)
|
|||||
Items excluded from operating earnings 2
|
(0.11)
|
1.57
|
(1.68)
|
|||||
REPORTED EARNINGS 1
|
$ 1.41
|
$ 3.25
|
$ (1.84)
|
|||||
1)
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Determined in accordance with Generally Accepted Accounting Principles (GAAP).
|
|||||||
2)
|
Items excluded from operating earnings are reported in Corporate and Other segment. Refer to Schedules
|
|||||||
2 and 3 for details, or find "GAAP Reconciliation" on Dominion's website at www.dom.com/investors.
|
||||||||
3)
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Pre-tax amounts for the current period and the prior period are ($6) million and $2.225 billion, respectively.
|
|||||||
4)
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Pre-tax amounts for the current period and the prior period are ($87) million and $1.790 billion, respectively.
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·
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$39 million impairment charge related to our State Line coal-fired merchant power station.
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·
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$20 million net loss from operations at our Kewaunee nuclear merchant power station, which is being marketed for sale.
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·
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$14 million benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at our Millstone nuclear power station.
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·
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$11 million of severance costs resulting from expected closings of our Salem Harbor and State Line merchant generation plants.
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·
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$8 million net expense related to other items.
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(millions, except per share amounts)
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
YTD 2011
|
2
|
|
Operating earnings
|
$541
|
$338
|
$0
|
$0
|
$879
|
||
Items excluded from operating earnings (after-tax):
|
|||||||
Impairment of merchant generation asset
|
(39)
|
(39)
|
|||||
Kewaunee operations
|
(19)
|
(1)
|
(20)
|
||||
Recoverable spent nuclear fuel-related costs
|
14
|
14
|
|||||
Severance costs - merchant generation plant closings
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(11)
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(11)
|
|||||
Other items
|
(4)
|
(4)
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(8)
|
||||
Total items excluded from operating earnings (after-tax) 1
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(62)
|
(2)
|
0
|
0
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(64)
|
||
Reported net income
|
$479
|
$336
|
$0
|
$0
|
$815
|
||
Common shares outstanding (average, diluted)
|
580.5
|
575.2
|
0.0
|
0.0
|
577.9
|
||
Operating earnings per share
|
$0.93
|
$0.59
|
$0.00
|
$0.00
|
$1.52
|
||
Items excluded from operating earnings (after-tax)
|
(0.11)
|
(0.01)
|
0.00
|
0.00
|
(0.11)
|
||
Reported earnings per share
|
$0.82
|
$0.58
|
$0.00
|
$0.00
|
$1.41
|
||
1)
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Pre-tax amounts for items excluded from operating earnings are reflected in the following table:
|
||||||
Items excluded from operating earnings:
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1Q11
|
2Q11
|
3Q11
|
4Q11
|
YTD 2011
|
||
Impairment of merchant generation asset
|
(55)
|
(55)
|
|||||
Kewaunee operations
|
(32)
|
(5)
|
(37)
|
||||
Recoverable spent nuclear fuel-related costs
|
24
|
24
|
|||||
Severance costs - merchant generation plant closings
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(17)
|
(17)
|
|||||
Other items
|
6
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(8)
|
(2)
|
||||
Total items excluded from operating earnings
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($81)
|
($6)
|
$0
|
$0
|
($87)
|
||
2)
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YTD 2011 EPS may not equal sum of quarters due to share count differences.
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·
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$1.4 billion net benefit resulting from the sale of our Appalachian E&P operations, primarily reflecting the gain on the sale, partially offset by certain transaction costs and other related charges.
|
·
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$206 million after-tax charge related to our work-force reduction program, primarily reflecting severance pay and other benefits to affected employees.
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·
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$155 million net loss from Peoples discontinued operations, primarily reflecting the loss on the sale recorded in February 2010.
|
·
|
$127 million of impairment charges related to certain merchant generation facilities.
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·
|
$57 million charge related to health care legislation changes, eliminating the tax deduction for a portion of retiree prescription drug costs.
|
·
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Impact of interim tax expense provision resulting from the impact of items excluded from operating earnings on our 2010 estimated annual effective tax rate.
|
·
|
$1 million net expense related to other items.
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(millions, except per share amounts)
|
1Q10
|
2Q10
|
3Q10
|
4Q10
|
YTD 2010
|
2
|
|
Operating earnings
|
$576
|
$426
|
$603
|
$366
|
$1,971
|
||
Items excluded from operating earnings (after-tax):
|
|||||||
Items related to the sale of Appalachian E&P operations
|
14
|
1,387
|
(18)
|
1,383
|
|||
Work force reduction program
|
(206)
|
(206)
|
|||||
Peoples discontinued operations
|
(149)
|
2
|
(8)
|
(155)
|
|||
Impairment of merchant generation assets
|
(95)
|
(32)
|
(127)
|
||||
Healthcare reform legislation - Medicare Part D tax impact
|
(57)
|
(57)
|
|||||
Interim tax provision
|
(16)
|
53
|
(24)
|
(13)
|
0
|
||
Other items
|
12
|
(12)
|
(4)
|
3
|
(1)
|
||
Total items excluded from operating earnings (after-tax) 1
|
(402)
|
1,335
|
(28)
|
(68)
|
837
|
||
Reported net income
|
$174
|
$1,761
|
$575
|
$298
|
$2,808
|
||
Common shares outstanding (average, diluted)
|
600.9
|
591.4
|
586.4
|
582.1
|
590.1
|
||
Operating earnings per share
|
$0.96
|
$0.72
|
$1.03
|
$0.63
|
$3.34
|
||
Items excluded from operating earnings (after-tax)
|
(0.67)
|
2.26
|
(0.05)
|
(0.12)
|
1.42
|
||
Reported earnings per share
|
$0.29
|
$2.98
|
$0.98
|
$0.51
|
$4.76
|
||
1)
|
Pre-tax amounts for items excluded from operating earnings are reflected in the following table:
|
||||||
Items excluded from operating earnings:
|
1Q10
|
2Q10
|
3Q10
|
4Q10
|
YTD 2010
|
||
Items related to the sale of Appalachian E&P operations
|
20
|
2,405
|
2,425
|
||||
Work force reduction program
|
(338)
|
(338)
|
|||||
Peoples discontinued operations
|
(137)
|
3
|
(134)
|
||||
Impairment of merchant generation assets
|
(163)
|
(31)
|
(194)
|
||||
Other items
|
20
|
(20)
|
(6)
|
6
|
0
|
||
Total items excluded from operating earnings
|
($435)
|
$2,225
|
($6)
|
($25)
|
$1,759
|
||
2)
|
YTD 2010 EPS may not equal sum of quarters due to share count differences.
|
Schedule 4 - Reconciliation of 2Q11 Earnings to 2Q10
|
|||||
Preliminary, unaudited
|
Three Months Ended
|
||||
(millions, except EPS)
|
June 30,
|
||||
2011 vs. 2010
|
|||||
Increase / (Decrease)
|
|||||
Reconciling Items
|
Amount
|
EPS
|
|||
Dominion Virginia Power
|
|||||
Regulated electric sales:
|
|||||
Weather
|
($10)
|
($0.02)
|
|||
Other
|
3
|
0.00
|
|||
FERC transmission equity return
|
12
|
0.02
|
|||
Storm damage and service restoration - distribution operations
|
(3)
|
0.00
|
|||
Retail energy marketing operations
|
6
|
0.01
|
|||
Other
|
(5)
|
(0.01)
|
|||
Share accretion
|
---
|
0.01
|
|||
Change in contribution to operating earnings
|
$3
|
$0.01
|
|||
Dominion Energy
|
|||||
Gas distribution margin
|
$8
|
$0.01
|
|||
Gas and Oil - disposed operations
|
(3)
|
0.00
|
|||
Producer Services margin
|
14
|
0.02
|
|||
Other
|
(1)
|
0.00
|
|||
Share accretion
|
---
|
0.01
|
|||
Change in contribution to operating earnings
|
$18
|
$0.04
|
|||
Dominion Generation
|
|||||
Regulated electric sales:
|
|||||
Weather
|
($23)
|
($0.04)
|
|||
Other
|
21
|
0.04
|
|||
Rate Adjustment Clause equity return
|
4
|
0.01
|
|||
Merchant generation margin
|
(35)
|
(0.06)
|
|||
Outage costs
|
(33)
|
(0.06)
|
|||
Kewaunee 2010 earnings
|
(10)
|
(0.02)
|
|||
Other
|
(6)
|
(0.01)
|
|||
Share accretion
|
---
|
0.01
|
|||
Change in contribution to operating earnings
|
($82)
|
($0.13)
|
|||
Corporate and Other
|
|||||
Change in contribution to operating earnings
|
($27)
|
($0.05)
|
|||
Change in consolidated operating earnings
|
($88)
|
($0.13)
|
|||
Change in items excluded from operating earnings 1
|
($1,337)
|
($2.27)
|
|||
Change in reported earnings (GAAP)
|
($1,425)
|
($2.40)
|
|||
1)
|
Refer to Schedules 2 and 3 for details of items excluded from operating earnings, or find "GAAP Reconciliation"
|
||||
on Dominion's website at www.dom.com/investors.
|