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 Energy, Inc. press release dated January 29, 2018
|
DOMINION ENERGY, INC.
Registrant |
/s/ Carter M. Reid
|
Carter M. Reid
Executive Vice President, Chief Administrative & Compliance Officer and Corporate Secretary
|
·
|
Full-year 2017 reported earnings of $4.93 per share
|
·
|
Full-year 2017 operating earnings of $3.60 per share
|
·
|
Company introduces 2018 operating earnings guidance of $3.80 to $4.25 per share
|
Dominion Energy, Inc.
Consolidated Statements of Income *
Unaudited (GAAP Based)
(millions, except per share amounts)
|
||||||||
Three Months Ended
|
Year Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
2017
|
2016
|
2017
|
2016
|
|||||
Operating Revenue
|
$ 3,210
|
$ 3,086
|
$ 12,586
|
$ 11,737
|
||||
Operating Expenses
|
||||||||
Electric fuel and other energy-related purchases
|
590
|
542
|
2,301
|
2,333
|
||||
Purchased (excess) electric capacity
|
14
|
(8)
|
6
|
99
|
||||
Purchased gas
|
260
|
207
|
701
|
459
|
||||
Other operations and maintenance
|
709
|
931
|
2,875
|
3,064
|
||||
Depreciation, depletion and amortization
|
484
|
447
|
1,905
|
1,559
|
||||
Other taxes
|
149
|
148
|
668
|
596
|
||||
Total operating expenses
|
2,206
|
2,267
|
8,456
|
8,110
|
||||
Income from operations
|
1,004
|
819
|
4,130
|
3,627
|
||||
Other income
|
(84)
|
61
|
165
|
250
|
||||
Interest and related charges
|
300
|
295
|
1,205
|
1,010
|
||||
Income from continuing operations including noncontrolling
|
||||||||
interests before income tax expense (benefit)
|
620
|
585
|
3,090
|
2,867
|
||||
Income tax expense (benefit)
|
(850)
|
94
|
(167)
|
655
|
||||
Income from continuing operations including
|
||||||||
noncontrolling interests
|
1,470
|
491
|
3,257
|
2,212
|
||||
Noncontrolling interests
|
21
|
34
|
121
|
89
|
||||
Net Income attributable to Dominion Energy
|
$ 1,449
|
$ 457
|
$ 3,136
|
$ 2,123
|
||||
Reported earnings per common share - diluted
|
$ 2.25
|
$ 0.73
|
$ 4.93
|
$ 3.44
|
||||
Average shares outstanding, diluted
|
643.9
|
627.1
|
636.0
|
617.1
|
||||
* The notes contained in Dominion Energy'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,
|
|||||||
2017
|
2016
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 1,449
|
$ 457
|
$ 992
|
|||||
Pre-tax loss (income) 2
|
207
|
256
|
(49)
|
|||||
Income tax 2
|
(1,071)
|
(95)
|
(976)
|
|||||
Adjustments to reported earnings
|
(864)
|
161
|
(1,025)
|
|||||
OPERATING EARNINGS
|
$ 585
|
$ 618
|
$ (33)
|
|||||
By segment:
|
||||||||
Power Delivery4
|
141
|
121
|
20
|
|||||
Power Generation4
|
311
|
331
|
(20)
|
|||||
Gas Infrastructure3, 4
|
285
|
243
|
42
|
|||||
Corporate and Other
|
(152)
|
(77)
|
(75)
|
|||||
$ 585
|
$ 618
|
$ (33)
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 2.25
|
$ 0.73
|
$ 1.52
|
|||||
Adjustments to reported earnings (after tax)
|
(1.34)
|
0.26
|
(1.60)
|
|||||
OPERATING EARNINGS
|
$ 0.91
|
$ 0.99
|
$ (0.08)
|
|||||
By segment:
|
||||||||
Power Delivery
|
0.22
|
0.19
|
0.03
|
|||||
Power Generation
|
0.48
|
0.53
|
(0.05)
|
|||||
Gas Infrastructure3
|
0.44
|
0.39
|
0.05
|
|||||
Corporate and Other
|
(0.23)
|
(0.12)
|
(0.11)
|
|||||
$ 0.91
|
$ 0.99
|
$ (0.08)
|
||||||
Common Shares Outstanding (average, diluted)
|
643.9
|
627.1
|
||||||
(millions, except earnings per share)
|
Twelve months ended December 31,
|
|||||||
2017
|
2016
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 3,136
|
$ 2,123
|
$ 1,013
|
|||||
Pre-tax loss (income) 2
|
235
|
359
|
(124)
|
|||||
Income tax 2
|
(1,082)
|
(135)
|
(947)
|
|||||
Adjustments to reported earnings
|
(847)
|
224
|
(1,071)
|
|||||
OPERATING EARNINGS
|
$ 2,289
|
$ 2,347
|
$ (58)
|
|||||
By segment:
|
||||||||
Power Delivery
|
531
|
484
|
47
|
|||||
Power Generation
|
1,181
|
1,397
|
(216)
|
|||||
Gas Infrastructure3
|
898
|
726
|
172
|
|||||
Corporate and Other
|
(321)
|
(260)
|
(61)
|
|||||
$ 2,289
|
$ 2,347
|
$ (58)
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 4.93
|
$ 3.44
|
$ 1.49
|
|||||
Adjustments to reported earnings (after tax)
|
(1.33)
|
0.36
|
(1.69)
|
|||||
OPERATING EARNINGS
|
$ 3.60
|
$ 3.80
|
$ (0.20)
|
|||||
By segment:
|
||||||||
Power Delivery
|
0.83
|
0.78
|
0.05
|
|||||
Power Generation
|
1.86
|
2.26
|
(0.40)
|
|||||
Gas Infrastructure3
|
1.41
|
1.18
|
0.23
|
|||||
Corporate and Other
|
(0.50)
|
(0.42)
|
(0.08)
|
|||||
$ 3.60
|
$ 3.80
|
$ (0.20)
|
||||||
Common Shares Outstanding (average, diluted)
|
636.0
|
617.1
|
||||||
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 Energy's website at www.dominionenergy.com/investors.
|
|||||||
3)
|
Includes Dominion Energy Questar effective September 2016.
|
|||||||
4)
|
In connection with its corporate rebranding, Dominion Energy changed the names of its principal operating segments to Power Delivery, Power Generation and Gas Infrastructure from Dominion Virginia Power, Dominion Generation and Dominion Energy, respectively.
|
|||||||
·
|
$158 million of impairment charges associated with our equity method investments in wind-powered generation facilities.
|
·
|
$72 million of transaction and transition costs, primarily associated with the Dominion Energy Questar combination.
|
·
|
$46 million net gain related to our investments in nuclear decommissioning trust funds.
|
(millions, except per share amounts)
|
1Q17
|
2Q17
|
3Q17
|
4Q17
|
YTD 2017
|
2
|
|
Reported earnings
|
$632
|
$390
|
$665
|
$1,449
|
$3,136
|
||
Adjustments to reported earnings 1:
|
|||||||
Pre-tax loss (income)
|
(31)
|
47
|
12
|
207
|
235
|
||
Income tax
|
10
|
(16)
|
(5)
|
(1,071)
|
(1,082)
|
||
(21)
|
31
|
7
|
(864)
|
(847)
|
|||
Operating earnings
|
$611
|
$421
|
$672
|
$585
|
$2,289
|
||
Common shares outstanding (average, diluted)
|
628.1
|
629.2
|
642.5
|
643.9
|
636.0
|
||
Reported earnings per share
|
$1.01
|
$0.62
|
$1.03
|
$2.25
|
$4.93
|
||
Adjustments to reported earnings (after-tax)
|
(0.04)
|
0.05
|
0.01
|
(1.34)
|
(1.33)
|
||
Operating earnings per share
|
$0.97
|
$0.67
|
$1.04
|
$0.91
|
$3.60
|
||
1) Adjustments to reported earnings are reflected in the following table:
|
|||||||
1Q17
|
2Q17
|
3Q17
|
4Q17
|
YTD 2017
|
|||
Pre-tax loss (income):
|
|||||||
Impairments of equity method investments
|
158
|
158
|
|||||
Merger-related transaction & transition costs
|
3
|
20
|
16
|
33
|
72
|
||
Net gain on NDT funds
|
(34)
|
(3)
|
(4)
|
(5)
|
(46)
|
||
Other
|
30
|
21
|
51
|
||||
($31)
|
$47
|
$12
|
$207
|
$235
|
|||
Income tax expense (benefit):
|
|||||||
Tax effect of above adjustments to reported earnings *
|
10
|
(16)
|
(5)
|
(83)
|
(94)
|
||
Re-measurement of Deferred Tax Balances **
|
(988)
|
(988)
|
|||||
$10
|
($16)
|
($5)
|
($1,071)
|
($1,082)
|
|||
* 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.
|
|||||||
** The Tax Cuts and Jobs Act reduced the corporate income tax rate from 35% to 21%, effective 1/1/2018. Deferred taxes are required to be measured at the enacted rate in effect when they are expected to reverse. As a result, deferred taxes were re-measured to the 21% rate. For regulated entities, where the reduction in deferred taxes is expected to be recovered or refunded in future rates, the adjustment was recorded to a regulatory asset or liability instead of income tax expense.
|
|||||||
2) YTD EPS may not equal sum of quarters due to share count differences
|
·
|
$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 Energy 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 rounding or share count differences
|
Schedule 4 - Reconciliation of 2017 Earnings to 2016
|
|||||||
Preliminary, Unaudited
(millions, except EPS)
|
Three Months Ended
December 31,
2017 vs. 2016
Increase / (Decrease)
|
Twelve Months Ended
December 31,
2017 vs. 2016
Increase / (Decrease)
|
|||||
Reconciling Items
|
Amount
|
EPS
|
Amount
|
EPS
|
|||
Change in reported earnings (GAAP)
|
$992
|
$1.52
|
$1,013
|
$1.49
|
|||
Change in Pre-tax loss (income) 1
|
(49)
|
(124)
|
|||||
Change in Income tax 1
|
(976)
|
(947)
|
|||||
Adjustments to reported earnings
|
($1,025)
|
($1.60)
|
($1,071)
|
($1.69)
|
|||
Change in consolidated operating earnings
|
($33)
|
($0.08)
|
($58)
|
($0.20)
|
|||
Power Delivery
|
|||||||
Regulated electric sales:
|
|||||||
Weather
|
$5
|
$0.01
|
($14)
|
($0.02)
|
|||
Other
|
3
|
0.01
|
15
|
0.02
|
|||
FERC Transmission equity return
|
1
|
0.00
|
14
|
0.02
|
|||
Storm damage and service restoration
|
(3)
|
(0.01)
|
14
|
0.02
|
|||
Other
|
14
|
0.03
|
18
|
0.03
|
|||
Share dilution
|
-
|
(0.01)
|
-
|
(0.02)
|
|||
Change in contribution to operating earnings
|
$20
|
$0.03
|
$47
|
$0.05
|
|||
Power Generation
|
|||||||
Regulated electric sales:
|
|||||||
Weather
|
$9
|
$0.01
|
($36)
|
($0.06)
|
|||
Other
|
5
|
0.01
|
32
|
0.05
|
|||
Merchant generation margin
|
(19)
|
(0.03)
|
(28)
|
(0.05)
|
|||
Outage costs
|
(21)
|
(0.03)
|
(22)
|
(0.03)
|
|||
Renewable energy investment tax credits
|
54
|
0.08
|
(133)
|
(0.21)
|
|||
Depreciation
|
(9)
|
(0.01)
|
(46)
|
(0.07)
|
|||
Electric capacity
|
(12)
|
(0.02)
|
58
|
0.09
|
|||
Interest expense (project level solar)
|
(4)
|
(0.01)
|
(15)
|
(0.02)
|
|||
Other
|
(23)
|
(0.04)
|
(26)
|
(0.04)
|
|||
Share dilution
|
-
|
(0.01)
|
-
|
(0.06)
|
|||
Change in contribution to operating earnings
|
($20)
|
($0.05)
|
($216)
|
($0.40)
|
|||
Gas Infrastructure
|
|||||||
Dominion Energy Questar combination2
|
$0
|
$0.00
|
$184
|
$0.30
|
|||
Farmout transaction
|
6
|
0.01
|
13
|
0.02
|
|||
Transportation and storage growth projects
|
8
|
0.01
|
29
|
0.04
|
|||
Noncontrolling interests
|
(3)
|
(0.01)
|
(30)
|
(0.05)
|
|||
Cove Point import contracts
|
(27)
|
(0.04)
|
(86)
|
(0.14)
|
|||
Other
|
58
|
0.09
|
62
|
0.10
|
|||
Share dilution
|
-
|
(0.01)
|
-
|
(0.04)
|
|||
Change in contribution to operating earnings
|
$42
|
$0.05
|
$172
|
$0.23
|
|||
Corporate and Other
|
|||||||
Renewable energy investment tax credits
|
($90)
|
($0.14)
|
$0
|
$0.00
|
|||
Interest expense and other
|
15
|
0.03
|
(61)
|
(0.08)
|
|||
Change in contribution to operating earnings
|
($75)
|
($0.11)
|
($61)
|
($0.08)
|
|||
Change in consolidated operating earnings
|
($33)
|
($0.08)
|
($58)
|
($0.20)
|
|||
Change in adjustments included in reported earnings1
|
$1,025
|
$1.60
|
$1,071
|
$1.69
|
|||
Change in consolidated reported earnings
|
$992
|
$1.52
|
$1,013
|
$1.49
|
|||
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 Energy's website at www.dominionenergy.com/investors.
|
|||||||
2)
|
Excludes financing impact of Dominion Energy Questar combination.
|
||||||
Note: Figures may not add due to rounding
|
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