RICHMOND, Va., Nov. 1, 2018 /PRNewswire/ -- Dominion Energy
(NYSE: D) today announced unaudited reported earnings determined in
accordance with Generally Accepted Accounting Principles (reported
earnings) for the three months ended Sept.
30, 2018 of $854 million
($1.30 per share) compared with
earnings of $665 million
($1.03 per share) for the same period
in 2017.
Operating earnings for the three months ended Sept. 30, 2018, were $758
million ($1.15 per share),
compared with operating earnings of $672
million ($1.04 per share) for
the same period in 2017. Operating earnings are defined as
reported earnings adjusted for certain items. The principal
difference between operating and reported earnings for the quarter
was a gain on nuclear decommissioning trust funds.
Thomas F. Farrell, II, chairman,
president and chief executive officer, said:
"Our third-quarter results were at the top end of our guidance
range of $0.95 to $1.15 representing another quarter of very strong
results. We are narrowing our 2018 full year operating
earnings per share guidance range to $3.95 to $4.10 per
share which preserves the same midpoint as our original
guidance. Assuming normal weather, we continue to expect
operating earnings per share for 2018 to be above the midpoint of
this narrowed guidance range.
"We continue to achieve important milestones for growth
investments in solar and offshore wind generation, strategic
electric distribution undergrounding, electric grid modernization,
electric transmission, nuclear generation relicensing, and gas
distribution pipeline replacement. These programs will
provide meaningful benefits to our customers and will support
earnings growth well into the next decade."
Additional non-core asset sale
Dominion Energy also
announced today that it has executed a definitive agreement to
divest its 50% interest in the Blue Racer Midstream joint venture
to First Reserve and affiliated investment funds for total
consideration of up to $1.5 billion
including $1.2 billion of cash
consideration and up to $300 million
in earn-out payments that would be payable from 2019 through 2021
based on Blue Racer Midstream's performance.
The transaction is expected to close by year-end 2018 and
initial proceeds will be used to reduce parent-level debt.
Goldman Sachs & Co acted as financial advisor to
Dominion Energy and Troutman Sanders
as legal counsel.
"Blue Racer Midstream is a high-quality business with an
extremely capable management team. However, this investment
has become non-core to Dominion Energy as we continue to focus on
regulated energy infrastructure," said Farrell. "We have
consistently indicated that a sale of Blue Racer would be
opportunistic based on a compelling valuation and transaction
structure. We are very pleased with the attractive valuation
achieved through the competitive sale process which represents a
multiple range of approximately 14 times to 16 times estimated 2018
EBITDA based on bookends of potential payments to be received under
the earn-out structure," he added.
Farrell continued, "In concluding the credit improvement
initiatives announced in March, we have sourced funds to reduce our
parent-level debt by around $8
billion including equity issuance, non-core asset sales, and
the Cove Point debt financing. As a result, we will achieve
our target parent company credit objectives two years earlier than
originally planned."
Atlantic Coast Pipeline, Supply Header project
updates
Dominion Energy also provided cost and schedule
updates on the Atlantic Coast Pipeline and Supply Header
projects. The FERC stop work order and delays obtaining
permits necessary for construction have impacted the cost and
schedule for the project. As a result, project cost estimates
have increased from a range of $6.0
to $6.5 billion to a range of
$6.5 to $7.0
billion, excluding financing costs.
Atlantic Coast Pipeline is pursuing a phased in-service approach
with its customers, whereby we maintain a late 2019 in-service for
key segments of the project to meet peak winter demand in
critically constrained regions served by the project.
ACP will be pursuing a mid-2020 in-service date for the remaining
segments of the project. Abnormal weather and/or work delays
(including delays due to judicial or regulatory action) may result
in cost or schedule modifications in the future.
The Supply Header project target in-service remains late
2019.
"We have been constructing ACP in West
Virginia and North Carolina
and on October 19 we received the
final Virginia permit required to
petition FERC to be underway with full mainline construction in all
three states," Farrell said. "Following approval from FERC of
our Notice to Proceed filing, we will begin mainline construction
in Virginia."
"We continue to achieve key milestones toward the successful
completion of this critical energy infrastructure project and look
forward to delivering safe, reliable, and affordable energy to our
customers in time to meet peak demand for the 2019/20 winter
season," Farrell added.
Third-quarter 2018 reported and operating earnings compared
to 2017
Reported earnings increased 27 cents per share as compared to third-quarter
2017. Business segment results and detailed descriptions of
items included in reported earnings but excluded from operating
earnings can be found on schedules 1, 2, and 3 of this
release.
Operating earnings increased 11
cents per share as compared to third-quarter 2017 per share
operating earnings. The increase is primarily
attributable to favorable weather in our regulated electric service
territory, the commercial operation of Cove Point Liquefaction
project and the impact of tax reform. Factors offsetting the
increase include lower renewable energy investment tax credits and
a higher share count.
Details of third-quarter operating earnings as compared to 2017
may be found on Schedule 4 of this release.
Fourth-quarter 2018 operating earnings
guidance
Dominion Energy expects fourth-quarter 2018
operating earnings in the range of $0.80 to $0.95 per
share, compared to fourth-quarter 2017 operating earnings of
$0.91 per share. Positive
drivers include the Cove Point Liquefaction project and the benefit
of tax reform. The company expects negative drivers for the quarter
to include lower renewable energy investment tax credits, higher
financing costs and a higher share count.
Important note to investors regarding operating and reported
earnings
Dominion Energy uses operating earnings as the
primary performance measurement of its earnings guidance and
results for public communications with analysts and
investors. Dominion Energy also uses operating earnings
internally for budgeting, for reporting to the Board of Directors,
for the company's incentive compensation plans and for its targeted
dividend payouts and other purposes. Dominion Energy management
believes operating earnings provide a more meaningful
representation of the company's fundamental earnings power.
In providing its operating earnings guidance, the company notes
that there could be differences between expected reported earnings
and estimated operating earnings for matters such as, but not
limited to, acquisitions, divestitures or changes in accounting
principles. At this time, Dominion Energy management is not
able to estimate the aggregate impact of these items on future
period reported earnings.
Conference call today
The company will host its
third-quarter earnings conference call at 11
a.m. ET on Thursday, Nov. 1, 2018. Management will
discuss third-quarter financial results and other matters of
interest to the financial community.
Domestic callers should dial (877) 410-5657.
International callers should dial (334) 323-9872. The
passcode for the conference call is "Dominion." Participants
should dial in 10 to 15 minutes prior to the scheduled start
time. Members of the media also are invited to listen.
A live webcast of the conference call, including accompanying
slides, and other financial information will be available on the
investor information pages at investors.dominionenergy.com.
A replay of the conference call will be available beginning
about 2 p.m. ET Nov. 1 and lasting until 11 p.m. ET Nov. 8. Domestic callers may
access the recording by dialing (877) 919-4059. International
callers should dial (334) 323-0140. The PIN for the replay is
89035328. Additionally, a replay of the webcast will be
available on the investor information pages by the end of the day
Nov. 1.
About Dominion Energy
Nearly 6 million customers in 19
states energize their homes and businesses with electricity or
natural gas from Dominion Energy (NYSE: D), headquartered in
Richmond, Va. The company is
committed to sustainable, reliable, affordable, and safe energy and
is one of the nation's largest producers and transporters of energy
with nearly $80 billion of assets
providing electric generation, transmission and distribution, as
well as natural gas storage, transmission, distribution, and
import/export services. As one of the nation's leading solar
operators, the company intends to reduce its carbon intensity 50
percent by 2030. Through its Dominion Energy Charitable Foundation,
as well as EnergyShare and other programs, Dominion Energy plans to
contribute more than $30 million in
2018 to community causes throughout its footprint and beyond.
Please visit www.DominionEnergy.com, Facebook or Twitter to learn
more.
This release contains certain forward-looking statements,
including forecasted operating earnings for fourth-quarter and
full-year 2018 and beyond which are subject to various risks and
uncertainties. Factors that could cause actual results
to differ include, but are not limited to: unusual weather
conditions and their effect on energy sales to customers and energy
commodity prices; extreme weather events and other natural
disasters; federal, state and local legislative and regulatory
developments; changes to federal, state and local environmental
laws and regulations, including proposed carbon regulations; cost
of environmental compliance; changes in enforcement practices of
regulators relating to environmental standards and litigation
exposure for remedial activities; capital market conditions,
including the availability of credit and the ability to obtain
financing on reasonable terms; fluctuations in interest rates;
changes in rating agency requirements or credit ratings and their
effect on availability and cost of capital; impacts of
acquisitions, divestitures, transfers of assets by Dominion Energy
to joint ventures or to Dominion Energy Midstream Partners, and
retirements of assets based on asset portfolio reviews; the
expected timing and likelihood of completion of the proposed
acquisition of SCANA Corporation, including the timing, receipt and
terms and conditions of required regulatory approvals;
receipt of approvals for, and timing of, closing dates for other
acquisitions and divestitures; changes in demand for Dominion
Energy's services; additional competition in Dominion Energy's
industries; changes to regulated rates collected by Dominion
Energy; changes in operating, maintenance and construction costs;
timing and receipt of regulatory approvals necessary for planned
construction or expansion projects and compliance with conditions
associated with such regulatory approvals; the inability to
complete planned construction projects within time frames initially
anticipated; and the ability of Dominion Energy Midstream Partners
to negotiate, obtain necessary approvals and consummate
acquisitions from Dominion Energy and third-parties, and the
impacts of such acquisitions. Other risk factors are
detailed from time to time in Dominion Energy's and Dominion Energy
Midstream Partners' quarterly reports on Form 10-Q or most recent
annual report on Form 10-K filed with the Securities and Exchange
Commission.
Dominion Energy,
Inc.
|
Consolidated
Statements of Income*
|
Unaudited (GAAP
Based)
|
(millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
(millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
Operating
Revenue
|
|
$
3,451
|
|
$
3,179
|
|
$
10,005
|
|
$
9,376
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Electric fuel and
other energy-related purchases
|
|
761
|
|
638
|
|
2,128
|
|
1,711
|
Purchased (excess)
electric capacity
|
|
50
|
|
21
|
|
87
|
|
(8)
|
Purchased
gas
|
|
5
|
|
24
|
|
409
|
|
441
|
Other operations and
maintenance
|
|
782
|
|
697
|
|
2,585
|
|
2,308
|
Depreciation,
depletion and amortization
|
|
526
|
|
485
|
|
1,487
|
|
1,421
|
Other
taxes
|
|
177
|
|
162
|
|
542
|
|
519
|
Total operating
expenses
|
|
2,301
|
|
2,027
|
|
7,238
|
|
6,392
|
Income from
operations
|
|
1,150
|
|
1,152
|
|
2,767
|
|
2,984
|
Other
income
|
|
373
|
|
121
|
|
658
|
|
391
|
Interest and related
charges
|
|
378
|
|
305
|
|
1,053
|
|
905
|
Income from
operations including noncontrolling interests
before income tax expense
|
|
1,145
|
|
968
|
|
2,372
|
|
2,470
|
Income tax
expense
|
|
262
|
|
272
|
|
485
|
|
683
|
Net Income
Including Noncontrolling Interests
|
|
883
|
|
696
|
|
1,887
|
|
1,787
|
Noncontrolling
Interests
|
|
29
|
|
31
|
|
81
|
|
100
|
Net Income
Attributable to Dominion Energy
|
|
$
854
|
|
$
665
|
|
$
1,806
|
|
$
1,687
|
Earnings Per
Common Share
|
|
|
|
|
|
|
|
|
Net income
attributable to Dominion Energy - Basic
|
|
$
1.31
|
|
$
1.03
|
|
$
2.77
|
|
$
2.66
|
Net income
attributable to Dominion Energy - Diluted
|
|
1.30
|
|
1.03
|
|
2.77
|
|
2.66
|
Dividends Declared
Per Common Share
|
|
$
0.8350
|
|
$
0.7700
|
|
$
2.505
|
|
$
2.280
|
|
|
|
|
|
|
|
|
|
* 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
(millions, except
earnings per share)
|
Three months ended
September 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED EARNINGS
1
|
$
854
|
|
$
665
|
|
$
189
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss (income)
2
|
(199)
|
|
12
|
|
(211)
|
|
|
Income tax
2
|
103
|
|
(5)
|
|
108
|
|
Adjustments to
reported earnings
|
(96)
|
|
7
|
|
(103)
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
$
758
|
|
$
672
|
|
$
86
|
|
|
By
segment:
|
|
|
|
|
|
|
|
Power
Delivery
|
163
|
|
138
|
|
25
|
|
|
Power
Generation
|
414
|
|
369
|
|
45
|
|
|
Gas
Infrastructure
|
264
|
|
187
|
|
77
|
|
|
Corporate and
Other
|
(83)
|
|
(22)
|
|
(61)
|
|
|
|
|
|
$
758
|
|
$
672
|
|
$
86
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(EPS):
|
|
|
|
|
|
|
REPORTED EARNINGS
1
|
$
1.30
|
|
$
1.03
|
|
$
0.27
|
|
Adjustments to
reported earnings (after tax)
|
(0.15)
|
|
0.01
|
|
(0.16)
|
|
OPERATING
EARNINGS
|
$
1.15
|
|
$
1.04
|
|
$
0.11
|
|
|
By
segment:
|
|
|
|
|
|
|
|
Power
Delivery
|
0.25
|
|
0.21
|
|
0.04
|
|
|
Power
Generation
|
0.63
|
|
0.57
|
|
0.06
|
|
|
Gas
Infrastructure
|
0.40
|
|
0.29
|
|
0.11
|
|
|
Corporate and
Other
|
(0.13)
|
|
(0.03)
|
|
(0.10)
|
|
|
|
|
|
$
1.15
|
|
$
1.04
|
|
$
0.11
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding (average, diluted)
|
654.9
|
|
642.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions, except
earnings per share)
|
Nine months ended
September 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED EARNINGS
1
|
$
1,806
|
|
$
1,687
|
|
$
119
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss (income)
2
|
|
251
|
|
28
|
|
223
|
|
|
Income tax
2
|
|
2
|
|
(11)
|
|
13
|
|
Adjustments to
reported earnings
|
253
|
|
17
|
|
236
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EARNINGS
|
$
2,059
|
|
$
1,704
|
|
$
355
|
|
|
By
segment:
|
|
|
|
|
|
|
|
Power
Delivery
|
464
|
|
390
|
|
74
|
|
|
Power
Generation
|
1,038
|
|
870
|
|
168
|
|
|
Gas
Infrastructure
|
840
|
|
613
|
|
227
|
|
|
Corporate and
Other
|
(283)
|
|
(169)
|
|
(114)
|
|
|
|
|
|
$
2,059
|
|
$
1,704
|
|
$
355
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(EPS):
|
|
|
|
|
|
|
REPORTED EARNINGS
1
|
$
2.77
|
|
$
2.66
|
|
$
0.11
|
|
Adjustments to
reported earnings (after tax)
|
0.39
|
|
0.03
|
|
0.36
|
|
OPERATING
EARNINGS
|
$
3.16
|
|
$
2.69
|
|
$
0.47
|
|
|
By
segment:
|
|
|
|
|
|
|
|
Power
Delivery
|
0.71
|
|
0.62
|
|
0.09
|
|
|
Power
Generation
|
1.59
|
|
1.37
|
|
0.22
|
|
|
Gas
Infrastructure
|
1.29
|
|
0.97
|
|
0.32
|
|
|
Corporate and
Other
|
(0.43)
|
|
(0.27)
|
|
(0.16)
|
|
|
|
|
|
$
3.16
|
|
$
2.69
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding (average, diluted)
|
652.8
|
|
633.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2 - Reconciliation of 2018 Reported Earnings to
Operating Earnings
2018 Earnings (Nine months ended September 30, 2018)
The $251 million pre-tax net effect of the adjustments
included in 2018 reported earnings, but excluded from operating
earnings, is primarily related to the following items:
- $215 million charge associated
with Virginia legislation enacted
in March that requires one-time rate credits of certain amounts to
utility customers.
- $124 million charge associated
with disallowance of FERC-regulated plant.
- $81 million charge associated
with the asset retirement obligations for ash ponds and landfills
at certain utility generation facilities in connection with the
enactment of Virginia legislation
in April.
- $31 million of restoration costs
associated with Winter Storm Riley
primarily affecting our Virginia
service territory.
- $28 million of transaction and
transition costs associated with the Dominion Energy Questar
combination and the proposed acquisition of SCANA Corporation.
- $156 million net gain related to
our investments in nuclear decommissioning trust funds.
- $70 million net benefit
associated with the announced sales of certain merchant electric
generation power stations, primarily reflecting a gain on the sale
of our 25% interest in Catalyst Old River Hydroelectric.
- $31 million benefit associated
with retroactive application of depreciation rates for regulated
nuclear plants to comply with the Virginia Commission requirements.
(millions,
except per share amounts)
|
1Q18
|
2Q18
|
3Q18
|
4Q18
|
YTD
2018
|
2
|
Reported
earnings
|
$503
|
$449
|
$854
|
|
$1,806
|
|
Adjustments to
reported earnings 1:
|
|
|
|
|
|
|
Pre-tax loss (income)
|
305
|
145
|
(199)
|
|
251
|
|
Income tax benefit
|
(67)
|
(34)
|
103
|
|
2
|
|
|
|
238
|
111
|
(96)
|
|
253
|
|
Operating
earnings
|
$741
|
$560
|
$758
|
|
$2,059
|
|
Common shares
outstanding (average, diluted)
|
650.5
|
653.1
|
654.9
|
|
652.8
|
|
Reported earnings
per share
|
$0.77
|
$0.69
|
$1.30
|
|
$2.77
|
|
Adjustments to
reported earnings (after-tax)
|
0.37
|
0.17
|
(0.15)
|
|
0.39
|
|
Operating earnings
per share
|
$1.14
|
$0.86
|
$1.15
|
|
$3.16
|
|
|
|
|
|
|
|
|
|
1) Adjustments to
reported earnings are reflected in the following
table:
|
|
|
|
|
|
|
|
|
1Q18
|
2Q18
|
3Q18
|
4Q18
|
YTD
2018
|
|
Pre-tax loss
(income):
|
|
|
|
|
|
|
Impact of Virginia rate legislation
|
215
|
|
|
|
215
|
|
FERC-regulated plant disallowance
|
|
122
|
2
|
|
124
|
|
Future ash pond and landfill closure costs
|
|
81
|
|
|
81
|
|
Storm costs
|
31
|
|
|
|
31
|
|
Merger-related transaction and transition costs
|
16
|
9
|
3
|
|
28
|
|
Net (gain) loss on NDT funds
|
43
|
(50)
|
(149)
|
|
(156)
|
|
Sale of non-core assets
|
|
|
(70)
|
|
(70)
|
|
VA
depreciation revision
|
|
(31)
|
|
|
(31)
|
|
Other
|
|
14
|
15
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
$305
|
$145
|
($199)
|
|
$251
|
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
Tax
effect of above adjustments to reported earnings *
|
(67)
|
(34)
|
38
|
|
(63)
|
|
Re-measurement of Deferred Tax balances **
|
|
|
47
|
|
47
|
|
Valuation Allowance ***
|
|
|
18
|
|
18
|
|
|
|
($67)
|
($34)
|
$103
|
|
$2
|
|
|
|
|
|
|
|
|
|
* 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** During 2018, the
Companies recorded further adjustments to deferred taxes in
accordance with recently released tax reform guidance
and
|
|
to revise estimates
made at year-end 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*** A valuation
allowance has been recognized against the portion of a deferred tax
asset associated with a pending asset sale that is no
|
|
longer projected of
being utilized to offset future taxable income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
YTD EPS may not equal sum of quarters due to share count
difference.
|
|
|
|
|
|
|
Schedule 3 - Reconciliation of 2017 Reported Earnings to
Operating Earnings
2017 Earnings (Twelve months ended December 31, 2017)
The $235 million pre-tax net effect of the adjustments
included in 2017 reported earnings, but excluded from operating
earnings, is primarily related to the following items:
- $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.
The 2017 Tax Reform Act reduced the corporate income tax rate
from 35% to 21%. Dominion Energy recognized $851 million of tax benefits resulting from the
re-measurement of deferred income taxes to the new corporate income
tax rate.
(millions,
except per share amounts)
|
1Q17
|
2Q17
|
3Q17
|
4Q17
|
YTD
2017
|
2
|
Reported
earnings
|
$632
|
$390
|
$665
|
$1,312
|
$2,999
|
|
Adjustments to
reported earnings 1:
|
|
|
|
|
|
|
Pre-tax loss (income)
|
(31)
|
47
|
12
|
207
|
235
|
|
Income tax
|
10
|
(16)
|
(5)
|
(934)
|
(945)
|
|
|
|
(21)
|
31
|
7
|
(727)
|
(710)
|
|
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
|
$2.04
|
$4.72
|
|
Adjustments to
reported earnings (after-tax)
|
(0.04)
|
0.05
|
0.01
|
(1.13)
|
(1.12)
|
|
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 **
|
|
|
|
(851)
|
(851)
|
|
|
|
|
|
|
|
|
|
|
|
$10
|
($16)
|
($5)
|
($934)
|
($945)
|
|
|
|
|
|
|
|
|
|
* 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Federal tax
reform, enacted in December 2017, 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
|
|
|
|
|
|
Schedule 4 -
Reconciliation of 3Q18 Earnings to 3Q17
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary,
Unaudited
|
Three Months
Ended
|
|
Nine Months
Ended
|
(millions,
except EPS)
|
September
30,
|
|
September
30,
|
|
|
2018 vs.
2017
|
|
2018 vs.
2017
|
|
|
Increase /
(Decrease)
|
|
Increase /
(Decrease)
|
Reconciling
Items
|
Amount
|
EPS
|
|
Amount
|
EPS
|
|
|
|
|
|
|
|
Change in reported
earnings (GAAP)
|
$189
|
$0.27
|
|
$119
|
$0.11
|
|
|
|
|
|
|
|
|
Change in Pre-tax
loss (income) 1
|
(211)
|
|
|
223
|
|
|
Change in Income tax
1
|
108
|
|
|
13
|
|
Adjustments to
reported earnings
|
($103)
|
($0.16)
|
|
$236
|
$0.36
|
|
|
|
|
|
|
|
Change in
consolidated operating earnings
|
$86
|
$0.11
|
|
$355
|
$0.47
|
|
|
|
|
|
|
|
Power Delivery
2
|
|
|
|
|
|
|
Regulated electric
sales:
|
|
|
|
|
|
|
Weather
|
$6
|
$0.01
|
|
$28
|
$0.04
|
|
Other
|
21
|
0.03
|
|
37
|
0.06
|
|
Rider
investment
|
6
|
0.01
|
|
11
|
0.01
|
|
Tax reform
impacts
|
0
|
-
|
|
0
|
-
|
|
Other
|
(8)
|
(0.01)
|
|
(2)
|
-
|
|
Share
dilution
|
-
|
-
|
|
-
|
(0.02)
|
|
Change in
contribution to operating earnings
|
$25
|
$0.04
|
|
$74
|
$0.09
|
|
|
|
|
|
|
|
Power
Generation 2
|
|
|
|
|
|
|
Regulated electric
sales:
|
|
|
|
|
|
|
Weather
|
$15
|
$0.02
|
|
$56
|
$0.09
|
|
Other
|
(6)
|
(0.01)
|
|
(13)
|
(0.02)
|
|
Merchant generation
margin
|
15
|
0.02
|
|
109
|
0.17
|
|
Planned outage
costs
|
1
|
-
|
|
41
|
0.07
|
|
Electric
capacity
|
(11)
|
(0.02)
|
|
(49)
|
(0.08)
|
|
Renewable energy
investment tax credits
|
4
|
0.01
|
|
(51)
|
(0.08)
|
|
Tax reform
impacts
|
12
|
0.02
|
|
44
|
0.07
|
|
Other
|
15
|
0.03
|
|
31
|
0.05
|
|
Share
dilution
|
-
|
(0.01)
|
|
-
|
(0.05)
|
|
Change in
contribution to operating earnings
|
$45
|
$0.06
|
|
$168
|
$0.22
|
|
|
|
|
|
|
|
Gas
Infrastructure 2
|
|
|
|
|
|
|
Farmout
transactions
|
$3
|
$0.00
|
|
$33
|
$0.05
|
|
Transportation and
storage growth projects
|
9
|
0.02
|
|
27
|
0.04
|
|
Cove Point
|
94
|
0.15
|
|
156
|
0.25
|
|
Tax reform
impacts
|
24
|
0.03
|
|
91
|
0.14
|
|
Interest
|
(31)
|
(0.05)
|
|
(59)
|
(0.09)
|
|
Other
|
(22)
|
(0.03)
|
|
(21)
|
(0.03)
|
|
Share
dilution
|
-
|
(0.01)
|
|
-
|
(0.04)
|
|
Change in
contribution to operating earnings
|
$77
|
$0.11
|
|
$227
|
$0.32
|
|
|
|
|
|
|
|
Corporate and
Other 2
|
|
|
|
|
|
|
Renewable energy
investment tax credits
|
($53)
|
($0.08)
|
|
($68)
|
($0.11)
|
|
Tax reform
impacts
|
(21)
|
(0.03)
|
|
(60)
|
(0.09)
|
|
Interest
expense
|
(8)
|
(0.01)
|
|
(7)
|
(0.01)
|
|
Share dilution and
other
|
21
|
0.02
|
|
21
|
0.05
|
|
Change in
contribution to operating earnings
|
($61)
|
($0.10)
|
|
($114)
|
($0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
consolidated operating earnings
|
$86
|
$0.11
|
|
$355
|
$0.47
|
|
|
|
|
|
|
|
Change in
adjustments included in reported
earnings1
|
$103
|
$0.16
|
|
($236)
|
($0.36)
|
|
|
|
|
|
|
|
Change in
consolidated reported earnings
|
$189
|
$0.27
|
|
$119
|
$0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
For period over
period comparability reconciling items tax effected using a 35%
federal tax rate.
|
|
Segment specific tax
reform impacts outlined as individual reconciling items.
|
Note: Figures may not
add due to rounding
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/dominion-energy-announces-third-quarter-2018-earnings-additional-non-core-asset-sale-provides-atlantic-coast-pipeline--supply-header-updates-300741822.html
SOURCE Dominion Energy