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
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Dominion Resources, Inc. press release dated May 4, 2017
|
DOMINION RESOURCES, INC.
Registrant |
/s/ Carter M. Reid
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Carter M. Reid
Senior Vice President, Chief Administrative & Compliance Officer and Corporate Secretary
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·
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First-quarter 2017 reported earnings of $1.01 per share
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·
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First-quarter operating earnings of $0.97 per share compared to guidance of $0.90 to $1.10 per share
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·
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Company affirms full-year 2017 operating earnings guidance of $3.40 to $3.90 per share
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Dominion Resources, Inc.
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|||
Consolidated Statements of Income *
|
|||
Unaudited (GAAP Based)
|
|||
(millions, except per share amounts)
|
|||
Three Months Ended
|
|||
March 31
|
|||
2017
|
2016
|
||
Operating Revenue
|
$ 3,384
|
$ 2,921
|
|
Operating Expenses
|
|||
Electric fuel and other energy-related purchases
|
575
|
634
|
|
Purchased (excess) electric capacity
|
(17)
|
68
|
|
Purchased gas
|
305
|
119
|
|
Other operations and maintenance
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738
|
703
|
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Depreciation, depletion and amortization
|
469
|
351
|
|
Other taxes
|
189
|
164
|
|
Total operating expenses
|
2,259
|
2,039
|
|
Income from operations
|
1,125
|
882
|
|
Other income
|
116
|
54
|
|
Interest and related charges
|
292
|
226
|
|
Income from continuing operations including noncontrolling interests before income taxes
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949 | 710 | |
|
|
|
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Income tax expense
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275
|
179
|
|
Net Income including noncontrolling interests
|
$ 674
|
$ 531
|
|
Noncontrolling interests
|
42
|
7
|
|
Net Income attributable to Dominion
|
$ 632
|
$ 524
|
|
Reported earnings per common share - diluted
|
$ 1.01
|
$ 0.88
|
|
Average shares outstanding, diluted
|
628.1
|
598.2
|
|
* 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 March 31,
|
|||||||
2017
|
2016
|
Change
|
||||||
REPORTED EARNINGS 1
|
$ 632
|
$ 524
|
$ 108
|
|||||
Pre-tax loss (income) 2
|
(31)
|
67
|
(98)
|
|||||
Income tax 2
|
10
|
(19)
|
29
|
|||||
Adjustments to reported earnings
|
(21)
|
48
|
(69)
|
|||||
OPERATING EARNINGS
|
$ 611
|
$ 572
|
$ 39
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
|
125
|
120
|
5
|
|||||
Dominion Energy 3
|
263
|
186
|
77
|
|||||
Dominion Generation
|
261
|
245
|
16
|
|||||
Corporate and Other
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(38)
|
21
|
(59)
|
|||||
$ 611
|
$ 572
|
$ 39
|
||||||
Earnings Per Share (EPS):
|
||||||||
REPORTED EARNINGS 1
|
$ 1.01
|
$ 0.88
|
$ 0.13
|
|||||
Adjustments to reported earnings (after tax)
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(0.04)
|
0.08
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(0.12)
|
|||||
OPERATING EARNINGS
|
$ 0.97
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$ 0.96
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$ 0.01
|
|||||
By segment:
|
||||||||
Dominion Virginia Power
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0.20
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0.20
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-
|
|||||
Dominion Energy 3
|
0.42
|
0.31
|
0.11
|
|||||
Dominion Generation
|
0.41
|
0.41
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-
|
|||||
Corporate and Other
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(0.06)
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0.04
|
(0.10)
|
|||||
$ 0.97
|
$ 0.96
|
$ 0.01
|
||||||
Common Shares Outstanding (average, diluted)
|
628.1
|
598.2
|
||||||
1)
|
Determined in accordance with Generally Accepted Accounting Principles (GAAP).
|
|||||||
2)
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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)2017 amounts include Dominion Questar. |
·
|
$34 million net gain related to our investments in nuclear decommissioning trust funds.
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(millions, except per share amounts)
|
1Q17
|
2Q17
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3Q17
|
4Q17
|
YTD 2017
|
|
Reported earnings
|
$632
|
$632
|
||||
Adjustments to reported earnings 1:
|
||||||
Pre-tax loss (income)
|
(31)
|
(31)
|
||||
Income tax
|
10
|
10
|
||||
(21)
|
(21)
|
|||||
Operating earnings
|
$611
|
$611
|
||||
Common shares outstanding (average, diluted)
|
628.1
|
628.1
|
||||
Reported earnings per share
|
$1.01
|
$1.01
|
||||
Adjustments to reported earnings (after-tax)
|
(0.04)
|
(0.04)
|
||||
Operating earnings per share
|
$0.97
|
$0.97
|
||||
1) Adjustments to reported earnings are reflected in the following table:
|
||||||
1Q17
|
2Q17
|
3Q17
|
4Q17
|
YTD 2017
|
||
Pre-tax loss (income):
|
||||||
Net gain on NDT funds
|
(34)
|
(34)
|
||||
Other
|
3
|
3
|
||||
($31)
|
($31)
|
|||||
Income tax expense (benefit):
|
||||||
Tax effect of above adjustments to reported earnings *
|
10
|
10
|
||||
$10
|
$10
|
|||||
* 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.
|
·
|
$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.
|
·
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$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.
|
·
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$23 million of restoration costs associated with Hurricane Matthew affecting our electric utility service territories.
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(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
|
Schedule 4 - Reconciliation of 1Q17 Earnings to 1Q16
|
||||
Preliminary, Unaudited
|
Three Months Ended
|
|||
(millions, except EPS)
|
March 31,
|
|||
2017 vs. 2016
|
||||
Increase / (Decrease)
|
||||
Reconciling Items
|
Amount
|
EPS
|
||
Change in reported earnings (GAAP)
|
$108
|
$0.13
|
||
Change in Pre-tax loss (income) 1
|
($98)
|
|||
Change in Income tax 1
|
29
|
|||
Adjustments to reported earnings
|
($69)
|
($0.12)
|
||
Change in consolidated operating earnings
|
$39
|
$0.01
|
||
Dominion Virginia Power
|
||||
Regulated electric sales:
|
||||
Weather
|
($10)
|
($0.02)
|
||
Other
|
10
|
0.02
|
||
FERC Transmission equity return
|
5
|
0.01
|
||
Storm damage and service restoration
|
4
|
0.01
|
||
Other
|
(4)
|
(0.01)
|
||
Share dilution
|
-
|
(0.01)
|
||
Change in contribution to operating earnings
|
$5
|
$0.00
|
||
Dominion Energy
|
||||
Dominion Questar combination2
|
$101
|
$0.17
|
||
Noncontrolling interest
|
(11)
|
(0.02)
|
||
Cove Point import contracts
|
(15)
|
(0.02)
|
||
Other
|
2
|
-
|
||
Share dilution
|
-
|
(0.02)
|
||
Change in contribution to operating earnings
|
$77
|
$0.11
|
||
Dominion Generation
|
||||
Regulated electric sales:
|
||||
Weather
|
($21)
|
($0.04)
|
||
Other
|
19
|
0.03
|
||
Rate adjustment clause equity return
|
6
|
0.01
|
||
Noncontrolling interest related to solar partnerships
|
(11)
|
(0.02)
|
||
Depreciation
|
(13)
|
(0.02)
|
||
Electric capacity
|
52
|
0.08
|
||
Interest expense
|
(7)
|
(0.01)
|
||
Other
|
(9)
|
(0.01)
|
||
Share dilution
|
-
|
(0.02)
|
||
Change in contribution to operating earnings
|
$16
|
$0.00
|
||
Corporate and Other
|
||||
Renewable energy investment tax credits
|
($42)
|
($0.07)
|
||
Other
|
(17)
|
(0.03)
|
||
Change in contribution to operating earnings
|
($59)
|
($0.10)
|
||
Change in consolidated operating earnings
|
$39
|
$0.01
|
||
Change in adjustments included in reported earnings1
|
$69
|
$0.12
|
||
Change in consolidated reported earnings
|
$108
|
$0.13
|
||
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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