Virginia
(State or other jurisdiction
of incorporation)
|
001-08489
(Commission
File Number)
|
54-1229715
(IRS Employer
Identification No.)
|
120 Tredegar Street
Richmond, Virginia
(Address of Principal Executive Offices)
|
23219
(Zip Code)
|
Exhibit
|
|
99
|
Dominion Resources, Inc. press release dated January 27, 2012
|
DOMINION RESOURCES, INC.
Registrant
|
/s/Carter M. Reid
|
Carter M. Reid
Vice President, General Counsel, Chief Compliance Officer & Corporate Secretary
|
FOR IMMEDIATE RELEASE
|
January 27, 2012
|
Company:
|
Dominion
|
Contacts:
|
|
Media:
|
Ryan Frazier (804) 819-2521, c.ryan.frazier@dom.com
Bill Hall (804) 819-2040, bill.hall@dom.com
|
Analysts:
|
Corynne Arnett (804) 819-2384, corynne.arnett@dom.com
Nathan Frost (804) 819-2187, nathan.j.frost@dom.com
|
|
|
· Full-year 2011 operating earnings of $3.05 per share
|
|
|
· Full-year 2011 GAAP earnings of $2.45 per share
|
|
|
· Fourth-quarter 2011 operating earnings of 58 cents per share
|
|
|
· Fourth-quarter 2011 GAAP earnings of 35 cents per share
|
|
|
· Company introduces 2012 operating earnings guidance of $3.10 to $3.35 per share
|
|
|
· Conference call scheduled for 10 a.m. EST today
|
Schedule 1 - Segment Operating Earnings
|
||||||||
Preliminary, Unaudited
|
||||||||
(millions, except earnings per share)
|
Three months ended December 31,
|
|||||||
2011
|
2010
|
Change
|
||||||
Earnings:
|
||||||||
Dominion Virginia Power
|
$112
|
$115
|
$(3)
|
|||||
Dominion Energy
|
153
|
122
|
31
|
|||||
Dominion Generation
|
117
|
203
|
(86)
|
|||||
Corporate and Other
|
(48)
|
(74)
|
26
|
|||||
OPERATING EARNINGS
|
$334
|
$366
|
$(32)
|
|||||
Items excluded from operating earnings 2, 3
|
(133)
|
(68)
|
(65)
|
|||||
REPORTED EARNINGS 1
|
$ 201
|
$298
|
$(97)
|
|||||
Common Shares Outstanding (average, diluted)
|
571.2
|
582.1
|
||||||
Earnings Per Share (EPS):
|
||||||||
Dominion Virginia Power
|
$0.20
|
$0.20
|
$ -
|
|||||
Dominion Energy
|
0.27
|
0.21
|
0.06
|
|||||
Dominion Generation
|
0.20
|
0.35
|
(0.15)
|
|||||
Corporate and Other
|
(0.09)
|
(0.13)
|
0.04
|
|||||
OPERATING EARNINGS
|
$0.58
|
$0.63
|
$(0.05)
|
|||||
Items excluded from operating earnings 2
|
(0.23)
|
(0.12)
|
(0.11)
|
|||||
REPORTED EARNINGS 1
|
$0.35
|
$0.51
|
$(0.16)
|
|||||
(millions, except earnings per share)
|
Twelve months ended December 31,
|
|||||||
2011
|
2010
|
Change
|
||||||
Earnings:
|
||||||||
Dominion Virginia Power
|
$501
|
$448
|
$53
|
|||||
Dominion Energy
|
521
|
475
|
46
|
|||||
Dominion Generation
|
1,003
|
1,291
|
(288)
|
|||||
Corporate and Other
|
(271)
|
(243)
|
(28)
|
|||||
OPERATING EARNINGS
|
$1,754
|
$1,971
|
$(217)
|
|||||
Items excluded from operating earnings 2, 4
|
(346)
|
837
|
(1,183)
|
|||||
REPORTED EARNINGS 1
|
$1,408
|
$2,808
|
$(1,400)
|
|||||
Common Shares Outstanding (average, diluted)
|
574.6
|
590.1
|
||||||
Earnings Per Share (EPS):
|
||||||||
Dominion Virginia Power
|
$0.87
|
$0.76
|
$0.11
|
|||||
Dominion Energy
|
0.91
|
0.80
|
0.11
|
|||||
Dominion Generation
|
1.74
|
2.19
|
(0.45)
|
|||||
Corporate and Other
|
(0.47)
|
(0.41)
|
(0.06)
|
|||||
OPERATING EARNINGS
|
$3.05
|
$3.34
|
$(0.29)
|
|||||
Items excluded from operating earnings 2
|
(0.60)
|
1.42
|
(2.02)
|
|||||
REPORTED EARNINGS 1
|
$2.45
|
$4.76
|
$(2.31)
|
|||||
1)
|
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)
|
Pre-tax amounts for the current period and the prior period are ($255) million and ($25) million, respectively.
|
|||||||
4)
|
Pre-tax amounts for the current period and the prior period are ($605) million and $1.759 billion, respectively.
|
·
|
$178 million of impairment charges related to certain utility ($139 million) and merchant ($39 million) coal-fired power stations.
|
·
|
$59 million of restoration costs associated with Hurricane Irene.
|
·
|
$39 million net loss from operations at our Kewaunee nuclear merchant power station, which is being marketed for sale.
|
·
|
$34 million impairment of excess emission allowances resulting from a new EPA air pollution rule.
|
·
|
$21 million of severance costs and other charges resulting from expected closings of our Salem Harbor and State Line merchant generation plants.
|
·
|
$19 million net charge in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009-2010 test years.
|
·
|
$13 million of earthquake related costs, largely related to inspections following the safe shutdown of reactors at our North Anna nuclear power station.
|
·
|
$14 million benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at Millstone nuclear power station.
|
·
|
$3 million net benefit related to other items.
|
(millions, except per share amounts)
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
YTD 2011
|
2
|
|
Operating earnings
|
$541
|
$338
|
$541
|
$334
|
$1,754
|
||
Items excluded from operating earnings (after-tax):
|
|||||||
Impairment of generation assets
|
(39)
|
(139)
|
(178)
|
||||
Hurricane Irene costs
|
(74)
|
15
|
(59)
|
||||
Kewaunee operations
|
(19)
|
(1)
|
(12)
|
(7)
|
(39)
|
||
Emission allowances impairments
|
(34)
|
(34)
|
|||||
Charges related to merchant generation plant closings
|
(11)
|
(10)
|
(21)
|
||||
Impact of Virginia Power biennial review order
|
(19)
|
(19)
|
|||||
Earthquake costs
|
(13)
|
(13)
|
|||||
Recoverable spent nuclear fuel-related costs
|
14
|
14
|
|||||
Other items
|
(4)
|
(4)
|
(6)
|
17
|
3
|
||
Total items excluded from operating earnings (after-tax) 1
|
(62)
|
(2)
|
(149)
|
(133)
|
(346)
|
||
Reported net income
|
$479
|
$336
|
$392
|
$201
|
$1,408
|
||
Common shares outstanding (average, diluted)
|
580.5
|
575.2
|
571.2
|
571.2
|
574.6
|
||
Operating earnings per share
|
$0.93
|
$0.59
|
$0.95
|
$0.58
|
$3.05
|
||
Items excluded from operating earnings (after-tax)
|
(0.11)
|
(0.01)
|
(0.26)
|
(0.23)
|
(0.60)
|
||
Reported earnings per share
|
$0.82
|
$0.58
|
$0.69
|
$0.35
|
$2.45
|
||
1)
|
Pre-tax amounts for items excluded from operating earnings are reflected in the following table:
|
||||||
Items excluded from operating earnings:
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
YTD 2011
|
||
Impairment of generation assets
|
(55)
|
(228)
|
(283)
|
||||
Hurricane Irene costs
|
(121)
|
25
|
(96)
|
||||
Kewaunee operations
|
(32)
|
(5)
|
(19)
|
(10)
|
(66)
|
||
Emission allowances impairments
|
(57)
|
(57)
|
|||||
Charges related to merchant generation plant closings
|
(17)
|
(16)
|
(33)
|
||||
Impact of Virginia Power biennial review order
|
(31)
|
(31)
|
|||||
Earthquake costs
|
(21)
|
(21)
|
|||||
Recoverable spent nuclear fuel-related costs
|
24
|
24
|
|||||
Other items
|
6
|
(8)
|
(29)
|
(11)
|
(42)
|
||
Total items excluded from operating earnings
|
($81)
|
($6)
|
($263)
|
($255)
|
($605)
|
||
2)
|
YTD 2011 EPS may not equal sum of quarters due to share count differences.
|
·
|
$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.
|
·
|
$206 million after-tax charge related to our work-force reduction program, primarily reflecting severance pay and other benefits to affected employees.
|
·
|
$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.
|
·
|
$57 million charge related to health care legislation changes, eliminating the tax deduction for a portion of retiree prescription drug costs.
|
·
|
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.
|
(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 2011 Earnings to 2010
|
||||||
Preliminary, unaudited
|
Three Months Ended
|
Twelve Months Ended
|
||||
(millions, except EPS)
|
December 31,
|
December 31,
|
||||
2011 vs. 2010
|
2011 vs. 2010
|
|||||
Increase / (Decrease)
|
Increase / (Decrease)
|
|||||
Reconciling Items
|
Amount
|
EPS
|
Amount
|
EPS
|
||
Dominion Virginia Power
|
||||||
Regulated electric sales:
|
||||||
Weather
|
($21)
|
($0.04)
|
($43)
|
($0.07)
|
||
Other
|
3
|
0.00
|
10
|
0.02
|
||
FERC transmission equity return
|
12
|
0.02
|
44
|
0.07
|
||
Storm damage and service restoration - distribution operations
|
2
|
0.00
|
9
|
0.02
|
||
Other O&M expenses
|
11
|
0.02
|
28
|
0.05
|
||
Retail energy marketing operations
|
(8)
|
(0.01)
|
6
|
0.01
|
||
Other
|
(2)
|
0.00
|
(1)
|
(0.01)
|
||
Share accretion
|
---
|
0.01
|
---
|
0.02
|
||
Change in contribution to operating earnings
|
($3)
|
$0.00
|
$53
|
$0.11
|
||
Dominion Energy
|
||||||
Gas distribution margin
|
($7)
|
($0.01)
|
$5
|
$0.01
|
||
Gas transmission margin
|
6
|
0.01
|
15
|
0.03
|
||
Producer Services margin
|
12
|
0.02
|
18
|
0.03
|
||
Other O&M expenses
|
13
|
0.02
|
11
|
0.02
|
||
Gas and Oil - disposed operations
|
0
|
0.00
|
(17)
|
(0.03)
|
||
Other
|
7
|
0.01
|
14
|
0.02
|
||
Share accretion
|
---
|
0.01
|
---
|
0.03
|
||
Change in contribution to operating earnings
|
$31
|
$0.06
|
$46
|
$0.11
|
||
Dominion Generation
|
||||||
Regulated electric sales:
|
||||||
Weather
|
($41)
|
($0.07)
|
($91)
|
($0.16)
|
||
Other
|
17
|
0.03
|
59
|
0.10
|
||
Rate Adjustment Clause equity return
|
5
|
0.01
|
30
|
0.05
|
||
Merchant generation margin
|
(128)
|
(0.22)
|
(288)
|
(0.50)
|
||
Outage costs
|
11
|
0.02
|
(11)
|
(0.02)
|
||
Kewaunee 2010 earnings
|
0
|
0.00
|
(19)
|
(0.03)
|
||
Other O&M expenses
|
53
|
0.09
|
71
|
0.12
|
||
Interest expense
|
(4)
|
(0.01)
|
(15)
|
(0.02)
|
||
Other
|
1
|
0.00
|
(24)
|
(0.03)
|
||
Share accretion
|
---
|
0.00
|
---
|
0.04
|
||
Change in contribution to operating earnings
|
($86)
|
($0.15)
|
($288)
|
($0.45)
|
||
Corporate and Other
|
||||||
Change in contribution to operating earnings
|
$26
|
$0.04
|
($28)
|
($0.06)
|
||
Change in consolidated operating earnings
|
($32)
|
($0.05)
|
($217)
|
($0.29)
|
||
Change in items excluded from operating earnings 1
|
($65)
|
($0.11)
|
($1,183)
|
($2.02)
|
||
Change in reported earnings (GAAP)
|
($97)
|
($0.16)
|
($1,400)
|
($2.31)
|
||
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.
|