Virginia
(State or other jurisdiction
of incorporation)
|
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
|
Dominion Resources, Inc. press release dated October 31, 2014
|
DOMINION RESOURCES, INC.
Registrant
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/s/ Carter M. Reid
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Carter M. Reid
Senior Vice President, Chief Administrative and Compliance Officer and Corporate Secretary
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·
|
Third-quarter 2014 operating earnings of 93 cents per share compared to guidance of 90 cents to $1.05 per share
|
·
|
Third-quarter 2014 GAAP earnings of 90 cents per share
|
·
|
Year-to-date operating earnings per share up 15 cents, or 6 percent over 2013
|
·
|
Company affirms 2014 operating earnings guidance of $3.35 to $3.65 per share
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Schedule 1 - Segment Operating Earnings
|
||||||||
Preliminary, Unaudited
|
||||||||
(millions, except earnings per share)
|
Three months ended September 30,
|
|||||||
2014
|
2013
|
Change
|
||||||
Earnings:
|
||||||||
Dominion Virginia Power*
|
$119
|
$121
|
$(2)
|
|||||
Dominion Energy
|
144
|
169
|
(25)
|
|||||
Dominion Generation*
|
326
|
340
|
(14)
|
|||||
Corporate and Other
|
(44)
|
(47)
|
3
|
|||||
OPERATING EARNINGS
|
$545
|
$583
|
$(38)
|
|||||
Items excluded from operating earnings 2, 3
|
(16)
|
(14)
|
(2)
|
|||||
REPORTED EARNINGS 1
|
$529
|
$569
|
$(40)
|
|||||
Common Shares Outstanding (average, diluted)
|
584.6
|
580.1
|
||||||
Earnings Per Share (EPS):
|
||||||||
Dominion Virginia Power*
|
$0.20
|
$0.21
|
$(0.01)
|
|||||
Dominion Energy
|
0.25
|
0.29
|
(0.04)
|
|||||
Dominion Generation*
|
0.56
|
0.58
|
(0.02)
|
|||||
Corporate and Other
|
(0.08)
|
(0.08)
|
-
|
|||||
OPERATING EARNINGS
|
$0.93
|
$1.00
|
$(0.07)
|
|||||
Items excluded from operating earnings 2
|
(0.03)
|
(0.02)
|
(0.01)
|
|||||
REPORTED EARNINGS 1
|
$0.90
|
$0.98
|
$(0.08)
|
|||||
(millions, except earnings per share)
|
Nine months ended September 30,
|
|||||||
2014
|
2013
|
Change
|
||||||
Earnings:
|
||||||||
Dominion Virginia Power*
|
$366
|
$349
|
$17
|
|||||
Dominion Energy
|
482
|
472
|
10
|
|||||
Dominion Generation*
|
794
|
779
|
15
|
|||||
Corporate and Other
|
(129)
|
(186)
|
57
|
|||||
OPERATING EARNINGS
|
$1,513
|
$1,414
|
$99
|
|||||
Items excluded from operating earnings 2, 4
|
(446)
|
(148)
|
(298)
|
|||||
REPORTED EARNINGS 1
|
$1,067
|
$1,266
|
$(199)
|
|||||
Common Shares Outstanding (average, diluted)
|
583.8
|
578.8
|
||||||
Earnings Per Share (EPS):
|
||||||||
Dominion Virginia Power*
|
$0.63
|
$0.60
|
$0.03
|
|||||
Dominion Energy
|
0.82
|
0.81
|
0.01
|
|||||
Dominion Generation*
|
1.36
|
1.35
|
0.01
|
|||||
Corporate and Other
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(0.22)
|
(0.32)
|
0.10
|
|||||
OPERATING EARNINGS
|
$2.59
|
$2.44
|
$0.15
|
|||||
Items excluded from operating earnings 2
|
(0.76)
|
(0.25)
|
(0.51)
|
|||||
REPORTED EARNINGS 1
|
$1.83
|
$2.19
|
$(0.36)
|
|||||
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)
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Pre-tax amounts for the current period and the prior period are ($54) million and $4 million, respectively.
|
|||||||
4)
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Pre-tax amounts for the current period and the prior period are ($708) million and ($228) million, respectively.
|
|||||||
*
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Amounts for 2013 have been recast to reflect unregulated retail energy marketing operations in Dominion Generation.
|
·
|
$219 million charge associated with Virginia legislation enacted in April that permits Virginia Power to recover 70% of the costs previously deferred or capitalized through Dec. 31, 2013 relating to the development of a third nuclear unit located at North Anna and offshore wind facilities as part of the 2013 and 2014 base rates.
|
·
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$193 million net charge related to the repositioning of our Producer Services business, reflecting the termination of natural gas trading and certain energy marketing activities.
|
·
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$31 million goodwill write-off associated with the company exiting the unregulated electric retail energy marketing business.
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·
|
$3 million net expense related to other items.
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(millions, except per share amounts)
|
1Q14
|
2Q14
|
3Q14
|
4Q14
|
YTD 2014
|
|
Operating earnings
|
$607
|
$361
|
$545
|
$1,513
|
||
Items excluded from operating earnings (after-tax):
|
||||||
North Anna and offshore wind facilities
|
(191)
|
(28)
|
(219)
|
|||
Producer Services repositioning
|
(193)
|
(193)
|
||||
Goodwill write-off at unregulated electric retail
|
(31)
|
(31)
|
||||
Other items
|
(4)
|
(11)
|
12
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(3)
|
||
Total items excluded from operating earnings (after-tax) 1
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(228)
|
(202)
|
(16)
|
(446)
|
||
Reported net income
|
$379
|
$159
|
$529
|
$1,067
|
||
Common shares outstanding (average, diluted)
|
582.9
|
583.9
|
584.6
|
583.8
|
||
Operating earnings per share
|
$1.04
|
$0.62
|
$0.93
|
$2.59
|
||
Items excluded from operating earnings (after-tax)
|
(0.39)
|
(0.35)
|
(0.03)
|
(0.76)
|
||
Reported earnings per share
|
$0.65
|
$0.27
|
$0.90
|
$1.83
|
||
1)
|
Pre-tax amounts for items excluded from operating earnings are reflected in the following table:
|
|||||
Items excluded from operating earnings:
|
1Q14
|
2Q14
|
3Q14
|
4Q14
|
YTD 2014
|
|
North Anna and offshore wind facilities
|
(287)
|
(43)
|
(330)
|
|||
Producer Services repositioning
|
(319)
|
(319)
|
||||
Goodwill write-off at unregulated electric retail
|
(31)
|
(31)
|
||||
Other items
|
(2)
|
(15)
|
(11)
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(28)
|
||
Total items excluded from operating earnings
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($352)
|
($302)
|
($54)
|
($708)
|
||
2)
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YTD EPS may not equal sum of quarters due to share count differences.
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·
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$92 million net loss from discontinued operations of two merchant power stations (Brayton Point & Kincaid) which were sold in third quarter 2013.
|
·
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$109 million net charge related to an impairment of certain natural gas infrastructure assets and the repositioning of Producer Services.
|
·
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$28 million charge in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2011-2012 test years.
|
·
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$17 million charge associated with our operating expense reduction initiative, primarily reflecting severance pay and other employee-related costs.
|
·
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$39 million net gain related to our investments in nuclear decommissioning trust funds.
|
·
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$30 million benefit due to a downward revision in the nuclear decommissioning asset retirement obligations (ARO) for certain merchant nuclear units that are no longer in service.
|
·
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$7 million net expense related to other items.
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(millions, except per share amounts)
|
1Q13
|
2Q13
|
3Q13
|
4Q13
|
YTD 2013
|
2
|
|
Operating earnings
|
$476
|
$355
|
$583
|
$467
|
$1,881
|
||
Items excluded from operating earnings (after-tax):
|
|||||||
Discontinued operations - Brayton Point & Kincaid
|
1
|
(70)
|
(23)
|
(92)
|
|||
Gas infrastructure & repositioning
|
(57)
|
(17)
|
(35)
|
(109)
|
|||
Impact of Virginia Power biennial review order
|
(28)
|
(28)
|
|||||
O&M expense reduction initiative
|
(17)
|
(17)
|
|||||
Net gain in nuclear decommissioning trust funds
|
20
|
1
|
9
|
9
|
39
|
||
ARO revision
|
30
|
30
|
|||||
Other items
|
(2)
|
(10)
|
17
|
(12)
|
(7)
|
||
Total items excluded from operating earnings (after-tax) 1
|
19
|
(153)
|
(14)
|
(36)
|
(184)
|
||
Reported net income
|
$495
|
$202
|
$569
|
$431
|
$1,697
|
||
Common shares outstanding (average, diluted)
|
577.5
|
578.9
|
580.1
|
581.3
|
579.5
|
||
Operating earnings per share
|
$0.83
|
$0.62
|
$1.00
|
$0.80
|
$3.25
|
||
Items excluded from operating earnings (after-tax)
|
0.03
|
(0.27)
|
(0.02)
|
(0.06)
|
(0.32)
|
||
Reported earnings per share
|
$0.86
|
$0.35
|
$0.98
|
$0.74
|
$2.93
|
||
1)
|
Pre-tax amounts for items excluded from operating earnings are reflected in the following table:
|
||||||
Items excluded from operating earnings:
|
1Q13
|
2Q13
|
3Q13
|
4Q13
|
YTD 2013
|
||
Discontinued operations - Brayton Point & Kincaid
|
1
|
(119)
|
(17)
|
(135)
|
|||
Gas infrastructure & repositioning
|
(107)
|
(23)
|
(52)
|
(182)
|
|||
Impact of Virginia Power biennial review order
|
(40)
|
(40)
|
|||||
O&M expense reduction initiative
|
(28)
|
(28)
|
|||||
Net gain in nuclear decommissioning trust funds
|
34
|
1
|
15
|
15
|
65
|
||
ARO revision
|
47
|
47
|
|||||
Other items
|
(4)
|
(10)
|
29
|
(26)
|
(11)
|
||
Total items excluded from operating earnings
|
$31
|
($263)
|
$4
|
($56)
|
($284)
|
||
2)
|
YTD EPS may not equal sum of quarters due to share count differences.
|
Schedule 4 - Reconciliation of 3Q14 Earnings to 3Q13
|
||||
Preliminary, unaudited
|
Three Months Ended
|
|||
(millions, except EPS)
|
September 30,
|
|||
2014 vs. 2013
|
||||
Increase / (Decrease)
|
||||
Reconciling Items
|
Amount
|
EPS
|
||
Dominion Virginia Power
|
||||
Regulated electric sales:
|
||||
Weather
|
($6)
|
($0.01)
|
||
Other
|
2
|
0.00
|
||
FERC Transmission equity return
|
7
|
0.01
|
||
Other
|
(5)
|
(0.01)
|
||
Change in contribution to operating earnings
|
($2)
|
($0.01)
|
||
Dominion Energy
|
||||
Gas Distribution margins
|
$4
|
$0.01
|
||
Blue Racer Midstream JV
|
(41)
|
(0.07)
|
||
Other
|
12
|
0.02
|
||
Change in contribution to operating earnings
|
($25)
|
($0.04)
|
||
Dominion Generation
|
||||
Regulated electric sales:
|
||||
Weather
|
($13)
|
($0.02)
|
||
Other
|
8
|
0.01
|
||
Merchant generation margin
|
6
|
0.01
|
||
Rate adjustment clause equity return
|
3
|
0.01
|
||
PJM ancillary services
|
(5)
|
(0.01)
|
||
Other
|
(13)
|
(0.02)
|
||
Change in contribution to operating earnings
|
($14)
|
($0.02)
|
||
Corporate and Other
|
||||
Change in contribution to operating earnings
|
$3
|
$0.00
|
||
Change in consolidated operating earnings
|
($38)
|
($0.07)
|
||
Change in items excluded from operating earnings 1
|
($2)
|
($0.01)
|
||
Change in reported earnings (GAAP)
|
($40)
|
($0.08)
|
||
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.
|
|||