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 February 1, 2017
|
DOMINION RESOURCES, INC.
Registrant |
/s/ Carter M. Reid
|
Carter M. Reid
Senior Vice President, Chief Administrative & Compliance Officer and Corporate Secretary
|
·
|
Full-year 2016 reported earnings of $3.44 per share
|
·
|
Full-year 2016 operating earnings of $3.80 per share, at the midpoint of Dominion's guidance of $3.60 to $4.00 per share
|
·
|
Company introduces 2017 operating earnings guidance of $3.40 to $3.90 per share
|
·
|
Company expects at least 10% growth in operating earnings in 2018 and compound average growth of 6-8% through 2020
|
Dominion Resources, Inc.
Consolidated Statements of Income *
Unaudited (GAAP Based)
(millions, except per share amounts)
|
|||||
Three Months Ended
|
Year Ended
|
||||
December 31,
|
December 31,
|
||||
2016
|
2015
|
2016
|
2015
|
||
Operating Revenue
|
$ 3,082
|
$ 2,556
|
$ 11,733
|
$ 11,683
|
|
Operating Expenses
|
|||||
Electric fuel and other energy-related purchases
|
542
|
545
|
2,333
|
2,725
|
|
Purchased electric capacity
|
(8)
|
71
|
99
|
330
|
|
Purchased gas
|
203
|
105
|
455
|
551
|
|
Other operations and maintenance
|
931
|
720
|
3,064
|
2,595
|
|
Depreciation, depletion and amortization
|
447
|
358
|
1,559
|
1,395
|
|
Other taxes
|
148
|
119
|
596
|
551
|
|
Total operating expenses
|
2,263
|
1,918
|
8,106
|
8,147
|
|
Income from operations
|
819
|
638
|
3,627
|
3,536
|
|
Other income
|
61
|
69
|
250
|
196
|
|
Interest and related charges
|
295
|
230
|
1,010
|
904
|
|
Income from continuing operations including noncontrolling
|
|||||
interests before income taxes
|
585
|
477
|
2,867
|
2,828
|
|
Income tax expense
|
94
|
111
|
655
|
905
|
|
Net Income including noncontrolling interests
|
$ 491
|
$ 366
|
$ 2,212
|
$ 1,923
|
|
Noncontrolling interests
|
34
|
9
|
89
|
24
|
|
Net Income attributable to Dominion
|
$ 457
|
$ 357
|
$ 2,123
|
$ 1,899
|
|
Reported earnings per common share - diluted
|
$ 0.73
|
$ 0.60
|
$ 3.44
|
$ 3.20
|
|
Average shares outstanding, diluted
|
627.1
|
596.7
|
617.1
|
593.7
|
|
* The notes contained in Dominion's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.
|
Schedule 1 - Segment Reported and Operating Earnings
|
||||||||
Preliminary, Unaudited
|
||||||||
(millions, except earnings per share)
|
Three months ended December 31,
|
|||||||
2016
|
2015
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 457
|
$ 357
|
$ 100
|
|||||
Pre-tax loss (income) 2
|
256
|
98
|
158
|
|||||
Income tax 2
|
(95)
|
(39)
|
(56)
|
|||||
Adjustments to reported earnings
|
161
|
59
|
102
|
|||||
OPERATING EARNINGS
|
$ 618
|
$ 416
|
$ 202
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
121
|
108
|
13
|
|||||
Dominion Energy 3
|
243
|
171
|
72
|
|||||
Dominion Generation
|
331
|
218
|
113
|
|||||
Corporate and Other
|
(77)
|
(81)
|
4
|
|||||
$ 618
|
$ 416
|
$ 202
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 0.73
|
$ 0.60
|
$ 0.13
|
|||||
Adjustments to reported earnings (after tax)
|
0.26
|
0.10
|
0.16
|
|||||
OPERATING EARNINGS
|
$ 0.99
|
$ 0.70
|
$ 0.29
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
0.19
|
0.18
|
0.01
|
|||||
Dominion Energy 3
|
0.39
|
0.29
|
0.10
|
|||||
Dominion Generation
|
0.53
|
0.37
|
0.16
|
|||||
Corporate and Other
|
(0.12)
|
(0.14)
|
0.02
|
|||||
$ 0.99
|
$ 0.70
|
$ 0.29
|
||||||
Common Shares Outstanding (average, diluted) | 627.1 | 596.7 | ||||||
(millions, except earnings per share)
|
Twelve months ended December 31,
|
|||||||
2016
|
2015
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 2,123
|
$ 1,899
|
$ 224
|
|||||
Pre-tax loss (income) 2
|
359
|
220
|
139
|
|||||
Income tax 2
|
(135)
|
(79)
|
(56)
|
|||||
Adjustments to reported earnings
|
224
|
141
|
83
|
|||||
OPERATING EARNINGS
|
$ 2,347
|
$ 2,040
|
$ 307
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
484
|
490
|
(6)
|
|||||
Dominion Energy 3
|
726
|
680
|
46
|
|||||
Dominion Generation
|
1,397
|
1,120
|
277
|
|||||
Corporate and Other
|
(260)
|
(250)
|
(10)
|
|||||
$ 2,347
|
$ 2,040
|
$ 307
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 3.44
|
$ 3.20
|
$ 0.24
|
|||||
Adjustments to reported earnings (after tax)
|
0.36
|
0.24
|
0.12
|
|||||
OPERATING EARNINGS
|
$ 3.80
|
$ 3.44
|
$ 0.36
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
0.78
|
0.82
|
(0.04)
|
|||||
Dominion Energy 3
|
1.18
|
1.15
|
0.03
|
|||||
Dominion Generation
|
2.26
|
1.89
|
0.37
|
|||||
Corporate and Other
|
(0.42)
|
(0.42)
|
-
|
|||||
$ 3.80
|
$ 3.44
|
$ 0.36
|
||||||
Common Shares Outstanding (average, diluted) | 617.1 | 593.7 | ||||||
1)
|
Determined in accordance with Generally Accepted Accounting Principles (GAAP).
|
|||||||
2)
|
Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings.
|
|||||||
Refer to Schedules 2 and 3 for details, or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion's website at www.dom.com/investors.
|
||||||||
3)
|
2016 amounts include Dominion Questar operations as of September 16, 2016.
|
·
|
$197 million additional charge associated with the asset retirement obligations for ash ponds and landfills at certain utility generation facilities to comply with the EPA coal combustion residuals rule.
|
·
|
$74 million of transaction and transition costs associated with the Dominion Questar combination, which was completed in September 2016.
|
·
|
$65 million charge associated with an organizational design initiative and primarily comprised of employee severance benefits.
|
·
|
$23 million of restoration costs associated with Hurricane Matthew affecting our electric utility service territories.
|
(millions, except per share amounts)
|
1Q16
|
2Q16
|
3Q16
|
4Q16
|
YTD 2016
|
2
|
|
Reported earnings
|
$524
|
$452
|
$690
|
$457
|
$2,123
|
||
Adjustments to reported earnings 1:
|
|||||||
Pre-tax loss (income)
|
67
|
(12)
|
48
|
256
|
359
|
||
Income tax
|
(19)
|
1
|
(22)
|
(95)
|
(135)
|
||
48
|
(11)
|
26
|
161
|
224
|
|||
Operating earnings
|
$572
|
$441
|
$716
|
$618
|
$2,347
|
||
Common shares outstanding (average, diluted)
|
598.2
|
617.0
|
626.0
|
627.1
|
617.1
|
||
Reported earnings per share
|
$0.88
|
$0.73
|
$1.10
|
$0.73
|
$3.44
|
||
Adjustments to reported earnings (after-tax)
|
0.08
|
(0.02)
|
0.04
|
0.26
|
0.36
|
||
Operating earnings per share
|
$0.96
|
$0.71
|
$1.14
|
$0.99
|
$3.80
|
||
1) Adjustments to reported earnings are reflected in the following table:
|
|||||||
1Q16
|
2Q16
|
3Q16
|
4Q16
|
YTD 2016
|
|||
Pre-tax loss (income):
|
|||||||
Future ash ponds and landfill closure costs
|
197
|
197
|
|||||
Questar transaction and transition costs
|
2
|
5
|
53
|
14
|
74
|
||
Organizational design initiative
|
70
|
(5)
|
65
|
||||
Hurricane Matthew costs
|
23
|
23
|
|||||
Other items
|
(5)
|
(12)
|
(5)
|
22
|
0
|
||
$67
|
($12)
|
$48
|
$256
|
$359
|
|||
Income tax expense (benefit):
|
|||||||
Tax effect of above adjustments to reported earnings *
|
(19)
|
1
|
(10)
|
(95)
|
(123)
|
||
Divestiture tax settlement
|
(12)
|
(12)
|
|||||
($19)
|
$1
|
($22)
|
($95)
|
($135)
|
|||
* Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, such amounts may be adjusted in connection with the calculation of the Company's year-to-date income tax provision based on its estimated annual effective tax rate.
|
|||||||
2) YTD EPS may not equal sum of quarters due to share count differences
|
|
$85 million charge associated with Virginia legislation enacted in February that required the write-off of Virginia Power prior-period deferred fuel costs during the first quarter of 2015.
|
·
|
$99 million charge associated with the asset retirement obligations for ash ponds and landfills at certain utility generation facilities in connection with the enactment of EPA coal combustion residuals rules in the second quarter of 2015.
|
·
|
$28 million net charge in connection with the Virginia Commission's final ruling associated with its biennial review of Virginia Power's base rates for 2013-2014 test years.
|
(millions, except per share amounts)
|
1Q15
|
2Q15
|
3Q15
|
4Q15
|
YTD 2015
|
2
|
Reported earnings
|
$536
|
$413
|
$593
|
$357
|
$1,899
|
|
Adjustments to reported earnings 1:
|
||||||
Pre-tax loss (income)
|
76
|
27
|
19
|
98
|
220
|
|
Income tax
|
(28)
|
(11)
|
(1)
|
(39)
|
(79)
|
|
48
|
16
|
18
|
59
|
141
|
||
Operating earnings
|
$584
|
$429
|
$611
|
$416
|
$2,040
|
|
Common shares outstanding (average, diluted)
|
589.9
|
592.5
|
595.5
|
596.7
|
593.7
|
|
Reported earnings per share
|
$0.91
|
$0.70
|
$1.00
|
$0.60
|
$3.20
|
|
Adjustments to reported earnings (after-tax)
|
0.08
|
0.03
|
0.03
|
0.10
|
0.24
|
|
Operating earnings per share
|
$0.99
|
$0.73
|
$1.03
|
$0.70
|
$3.44
|
|
1) Adjustments to reported earnings are reflected in the following table:
|
||||||
1Q15
|
2Q15
|
3Q15
|
4Q15
|
YTD 2015
|
||
Pre-tax loss (income):
|
||||||
Write-off of deferred fuel costs
|
85
|
85
|
||||
Future ash pond and landfill closure costs
|
45
|
54
|
99
|
|||
Impact of Virginia Power biennial review
|
28
|
28
|
||||
Other items
|
(9)
|
(18)
|
19
|
16
|
8
|
|
$76
|
$27
|
$19
|
$98
|
$220
|
||
Income tax expense (benefit):
|
||||||
Tax effect of above adjustments to reported earnings *
|
(28)
|
(11)
|
(7)
|
(39)
|
(85)
|
|
Deferred taxes refundable to utility customers
|
6
|
6
|
||||
($28)
|
($11)
|
($1)
|
($39)
|
($79)
|
||
* Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, such amounts may be adjusted in connection with the calculation of the Company's year-to-date income tax provision based on its estimated annual effective tax rate.
|
||||||
2) YTD EPS may not equal sum of quarters due to share count differences
|
Schedule 4 - Reconciliation of 2016 Earnings to 2015
|
||||||
Preliminary, unaudited
|
Three Months Ended
|
Twelve Months Ended
|
||||
(millions, except EPS)
|
December 31,
|
December 31,
|
||||
2016 vs. 2015
|
2016 vs. 2015
|
|||||
Increase / (Decrease)
|
Increase / (Decrease)
|
|||||
Reconciling Items
|
Amount
|
EPS
|
Amount
|
EPS
|
||
Change in reported earnings (GAAP)
|
$100
|
$0.13
|
$224
|
$0.24
|
||
Change in Pre-tax loss (income) 1
|
$158
|
$139
|
||||
Change in Income tax 1
|
(56)
|
(56)
|
||||
Adjustments to reported earnings
|
$102
|
$0.16
|
$83
|
$0.12
|
||
Change in consolidated operating earnings
|
$202
|
$0.29
|
$307
|
$0.36
|
||
Dominion Virginia Power
|
||||||
Regulated electric sales:
|
||||||
Weather
|
$13
|
$0.02
|
($1)
|
-
|
||
Other
|
1
|
-
|
1
|
-
|
||
FERC Transmission equity return
|
11
|
0.02
|
41
|
0.07
|
||
Depreciation
|
(3)
|
-
|
(10)
|
(0.02)
|
||
Storm damage and service restoration
|
1
|
-
|
(16)
|
(0.03)
|
||
AFUDC equity return
|
(2)
|
-
|
(8)
|
(0.01)
|
||
Other
|
(8)
|
(0.01)
|
(13)
|
(0.02)
|
||
Share dilution
|
-
|
(0.01)
|
-
|
(0.03)
|
||
Change in contribution to operating earnings
|
$13
|
$0.01
|
($6)
|
($0.04)
|
||
Dominion Energy
|
||||||
Gas Distribution margin
|
$10
|
$0.02
|
$13
|
$0.02
|
||
Farmout transaction
|
(1)
|
-
|
(48)
|
(0.08)
|
||
Dominion Questar combination2
|
73
|
0.12
|
78
|
0.13
|
||
Other
|
(10)
|
(0.02)
|
3
|
0.01
|
||
Share dilution
|
-
|
(0.02)
|
-
|
(0.05)
|
||
Change in contribution to operating earnings
|
$72
|
$0.10
|
$46
|
$0.03
|
||
Dominion Generation
|
||||||
Regulated electric sales:
|
||||||
Weather
|
$24
|
$0.04
|
$2
|
-
|
||
Other
|
1
|
-
|
13
|
0.02
|
||
Merchant generation margin
|
8
|
0.01
|
(34)
|
(0.06)
|
||
Rate adjustment clause equity return
|
6
|
0.01
|
24
|
0.04
|
||
Renewable energy investment tax credits
|
6
|
0.01
|
186
|
0.31
|
||
Noncontrolling interest related to solar partnerships
|
(8)
|
(0.01)
|
(28)
|
(0.05)
|
||
Depreciation
|
(10)
|
(0.02)
|
(25)
|
(0.04)
|
||
Electric capacity
|
48
|
0.08
|
137
|
0.23
|
||
Other
|
38
|
0.06
|
2
|
0.01
|
||
Share dilution
|
-
|
(0.02)
|
-
|
(0.09)
|
||
Change in contribution to operating earnings
|
$113
|
$0.16
|
$277
|
$0.37
|
||
Corporate and Other
|
||||||
Renewable energy investment tax credits
|
$25
|
$0.04
|
-
|
-
|
||
Other
|
(21)
|
(0.02)
|
(10)
|
-
|
||
Change in contribution to operating earnings
|
$4
|
$0.02
|
($10)
|
-
|
||
Change in consolidated operating earnings
|
$202
|
$0.29
|
$307
|
$0.36
|
||
Change in adjustments included in reported earnings1
|
($102)
|
($0.16)
|
($83)
|
($0.12)
|
||
Change in consolidated reported earnings
|
$100
|
$0.13
|
$224
|
$0.24
|
||
1)
|
Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings.
|
|||||
Refer to Schedules 2 and 3 for details, or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion's website at www.dom.com/investors.
|
||||||
2)
|
Excludes financing impact of Dominion Questar combination.
|
|||||
Note: Figures may not add due to rounding
|
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