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 August 3, 2016
|
DOMINION RESOURCES, INC.
Registrant |
/s/ Carter M. Reid
|
Carter M. Reid
Senior Vice President, Chief Administrative & Compliance Officer and Corporate Secretary
|
·
|
Second-quarter 2016 reported earnings of $0.73 per share
|
·
|
Second-quarter 2016 operating earnings of $0.71 per share compared to guidance of $0.65 to $0.75 per share
|
DOMINION RESOURCES, INC.
|
|||||||
CONSOLIDATED STATEMENTS OF INCOME*
|
|||||||
Unaudited (GAAP Based)
|
|||||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||
2016
|
2015
|
2016
|
2015
|
||||
Operating Revenue
|
$ 2,598
|
$ 2,747
|
$ 5,519
|
$ 6,156
|
|||
Operating Expenses
|
|||||||
Electric fuel and other energy-related purchases
|
551
|
591
|
1,185
|
1,544
|
|||
Purchased electric capacity
|
45
|
90
|
113
|
184
|
|||
Purchased gas
|
56
|
111
|
175
|
361
|
|||
Other operations and maintenance
|
665
|
709
|
1,368
|
1,311
|
|||
Depreciation, depletion and amortization
|
361
|
339
|
712
|
682
|
|||
Other taxes
|
139
|
134
|
303
|
299
|
|||
Total operating expenses
|
1,817
|
1,974
|
3,856
|
4,381
|
|||
Income from operations
|
781
|
773
|
1,663
|
1,775
|
|||
Other income
|
72
|
56
|
126
|
116
|
|||
Interest and related charges
|
239
|
221
|
465
|
444
|
|||
Income from operations including noncontrolling interests before income tax expense
|
614
|
608
|
1,324
|
1,447
|
|||
Income tax expense
|
152
|
190
|
331
|
489
|
|||
Net Income Including Noncontrolling Interests
|
462
|
418
|
993
|
958
|
|||
Noncontrolling Interests
|
10
|
5
|
17
|
9
|
|||
Net Income Attributable to Dominion
|
$ 452
|
$ 413
|
$ 976
|
$ 949
|
|||
Earnings Per Common Share – Basic
|
|||||||
Net Income Attributable to Dominion
|
$ 0.73
|
$ 0.70
|
$ 1.61
|
$ 1.61
|
|||
Earnings Per Common Share – Diluted
|
|||||||
Net Income Attributable to Dominion
|
$ 0.73
|
$ 0.70
|
$ 1.61
|
$ 1.60
|
|||
Dividends declared per common share
|
$ 0.7000
|
$ 0.6475
|
$ 1.4000
|
$ 1.2950
|
|||
*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 Earnings
|
||||||||
Preliminary, Unaudited
|
||||||||
(millions, except earnings per share)
|
Three months ended June 30,
|
|||||||
2016
|
2015
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 452
|
$ 413
|
$ 39
|
|||||
Pre-tax loss (income) 2
|
(12)
|
27
|
(39)
|
|||||
Income tax 2
|
1
|
(11)
|
12
|
|||||
Adjustments to reported earnings
|
(11)
|
16
|
(27)
|
|||||
OPERATING EARNINGS
|
$ 441
|
$ 429
|
$ 12
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
104
|
117
|
(13)
|
|||||
Dominion Energy 3
|
162
|
129
|
33
|
|||||
Dominion Generation 3
|
171
|
250
|
(79)
|
|||||
Corporate and Other
|
4
|
(67)
|
71
|
|||||
$ 441
|
$ 429
|
$ 12
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 0.73
|
$ 0.70
|
$ 0.03
|
|||||
Adjustments to reported earnings (after tax)
|
(0.02)
|
0.03
|
(0.05)
|
|||||
OPERATING EARNINGS
|
$ 0.71
|
$ 0.73
|
$ (0.02)
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
0.17
|
0.20
|
(0.03)
|
|||||
Dominion Energy 3
|
0.26
|
0.22
|
0.04
|
|||||
Dominion Generation 3
|
0.28
|
0.42
|
(0.14)
|
|||||
Corporate and Other
|
-
|
(0.11)
|
0.11
|
|||||
$ 0.71
|
$ 0.73
|
$ (0.02)
|
||||||
Common Shares Outstanding (average, diluted)
|
617.0
|
592.5
|
||||||
(millions, except earnings per share)
|
Six months ended June 30,
|
|||||||
2016
|
2015
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 976
|
$ 949
|
$ 27
|
|||||
Pre-tax loss (income) 2
|
55
|
103
|
(48)
|
|||||
Income tax 2
|
(18)
|
(39)
|
21
|
|||||
Adjustments to reported earnings
|
37
|
64
|
(27)
|
|||||
OPERATING EARNINGS
|
$ 1,013
|
$ 1,013
|
$ -
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
224
|
257
|
(33)
|
|||||
Dominion Energy 3
|
348
|
356
|
(8)
|
|||||
Dominion Generation 3
|
416
|
512
|
(96)
|
|||||
Corporate and Other
|
25
|
(112)
|
137
|
|||||
$ 1,013
|
$ 1,013
|
$ -
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 1.61
|
$ 1.60
|
$ 0.01
|
|||||
Adjustments to reported earnings (after tax)
|
0.06
|
0.11
|
(0.05)
|
|||||
OPERATING EARNINGS
|
$ 1.67
|
$ 1.71
|
$ (0.04)
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
0.37
|
0.43
|
(0.06)
|
|||||
Dominion Energy 3
|
0.57
|
0.60
|
(0.03)
|
|||||
Dominion Generation 3
|
0.69
|
0.87
|
(0.18)
|
|||||
Corporate and Other
|
0.04
|
(0.19)
|
0.23
|
|||||
$ 1.67
|
$ 1.71
|
$ (0.04)
|
||||||
Common Shares Outstanding (average, diluted)
|
607.6
|
591.2
|
||||||
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)
|
2015 amounts have been recast to reflect non-regulated retail energy marketing operations in the Dominion Energy segment.
|
·
|
$65 million charge associated with an organizational design initiative, and primarily comprised of employee severance benefits.
|
·
|
$13 million net gain related to our investments in nuclear decommissioning trust funds.
|
(millions, except per share amounts)
|
1Q16
|
2Q16
|
3Q16
|
4Q16
|
YTD 2016
|
2
|
|
Reported earnings
|
$524
|
$452
|
$976
|
||||
Adjustments to reported earnings 1:
|
|||||||
Pre-tax loss (income)
|
67
|
(12)
|
55
|
||||
Income tax
|
(19)
|
1
|
(18)
|
||||
48
|
(11)
|
37
|
|||||
Operating earnings
|
$572
|
$441
|
$1,013
|
||||
Common shares outstanding (average, diluted)
|
598.2
|
617.0
|
607.6
|
||||
Reported earnings per share
|
$0.88
|
$0.73
|
$1.61
|
||||
Adjustments to reported earnings (after-tax)
|
0.08
|
(0.02)
|
0.06
|
||||
Operating earnings per share
|
$0.96
|
$0.71
|
$1.67
|
||||
1) Adjustments to reported earnings are reflected in the following table:
|
|||||||
1Q16
|
2Q16
|
3Q16
|
4Q16
|
YTD 2016
|
|||
Pre-tax loss (income):
|
|||||||
Organizational design initiative
|
70
|
(5)
|
65
|
||||
Net gain in nuclear decommissioning trust funds
|
(2)
|
(11)
|
(13)
|
||||
Other items
|
(1)
|
4
|
3
|
||||
$67
|
($12)
|
$55
|
|||||
Income tax:
|
|||||||
Tax impact of above adjustments to reported earnings
|
($19)
|
$1
|
($18)
|
||||
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:
|
||||||
Tax impact of above adjustments to reported earnings
|
(28)
|
(11)
|
(7)
|
(39)
|
(85)
|
|
Deferred taxes refundable to utility customers
|
6
|
6
|
||||
($28)
|
($11)
|
($1)
|
($39)
|
($79)
|
||
2) YTD EPS may not equal sum of quarters due to share count differences
|
Schedule 4 - Change in Contribution to Reported and Operating Earnings
|
|||||
Preliminary, unaudited
|
Three Months Ended
|
||||
(millions, except EPS)
|
June 30,
2016 vs. 2015
Increase / (Decrease)
|
||||
Amount
|
EPS
|
||||
Change in reported earnings (GAAP)
|
$39
|
$0.03
|
|||
Change in Pre-tax loss (income) 1
|
(39)
|
||||
Change in Income tax 1
|
12
|
||||
Adjustments to reported earnings
|
(27)
|
(0.05)
|
|||
Change in consolidated operating earnings
|
$12
|
($0.02)
|
|||
Reconciling Items
|
|||||
Dominion Virginia Power
|
|||||
Regulated electric sales:
|
|||||
Weather
|
($11)
|
($0.02)
|
|||
Other
|
-
|
-
|
|||
FERC transmission equity return
|
10
|
0.02
|
|||
Storm damage and service restoration
|
(10)
|
(0.02)
|
|||
Other
|
(2)
|
-
|
|||
Share dilution
|
-
|
(0.01)
|
|||
Change in contribution to reported and operating earnings
|
($13)
|
($0.03)
|
|||
Dominion Energy
|
|||||
Gas Distribution margin
|
$2
|
-
|
|||
Farmout transaction
|
21
|
0.04
|
|||
Retail energy marketing operations
|
6
|
0.01
|
|||
Other
|
4
|
-
|
|||
Share dilution
|
-
|
(0.01)
|
|||
Change in contribution to reported and operating earnings
|
$33
|
$0.04
|
|||
Dominion Generation
|
|||||
Regulated electric sales:
|
|||||
Weather
|
($23)
|
($0.04)
|
|||
Other
|
5
|
0.01
|
|||
Renewable energy investment tax credits
|
(30)
|
(0.05)
|
|||
Merchant generation margin
|
(20)
|
(0.03)
|
|||
Rate adjustment clause equity return
|
10
|
0.02
|
|||
Capacity related expenses
|
26
|
0.04
|
|||
Outage costs
|
(24)
|
(0.04)
|
|||
Other
|
(23)
|
(0.04)
|
|||
Share dilution
|
-
|
(0.01)
|
|||
Change in contribution to reported and operating earnings
|
($79)
|
($0.14)
|
|||
Corporate and Other
|
|||||
Renewable energy investment tax credits
|
$47
|
$0.07
|
|||
Other
|
24
|
0.04
|
|||
Change in contribution to operating earnings
|
$71
|
$0.11
|
|||
Change in consolidated operating earnings
|
$12
|
($0.02)
|
|||
Change in adjustments included in reported earnings1
|
27
|
0.05
|
|||
Change in consolidated reported earnings
|
$39
|
$0.03
|
|||
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.
|
|||||
Note: Figures may not add due to rounding.
|
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