EX-99.1 15 d431694dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

Revised

4th Quarter 2012

Earnings Release

Kit

February 28, 2013


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Table of Contents

 

IMPORTANT NOTES TO INVESTORS

     3   

EARNINGS REPORT AND ACCOMPANYING SCHEDULES

     4   

EARNINGS REPORT

     4   

SCHEDULE 1 - SEGMENT OPERATING EARNINGS

     7   

SCHEDULE 2 - RECONCILIATION OF 2012 OPERATING EARNINGS TO REPORTED EARNINGS

     8   

SCHEDULE 3 - RECONCILIATION OF 2011 ORIGINAL OPERATING EARNINGS TO REPORTED EARNINGS

     9   

SCHEDULE 4 - RECONCILIATION OF 2012 EARNINGS TO 2011

     10   

FINANCIALS

     11   

CONSOLIDATED FINANCIAL STATEMENTS (GAAP)

     11   

SEGMENT OPERATING EARNINGS RESULTS

     14   

OPERATING STATISTICS

     20   

2012 WEATHER VARIANCE

     23   

FINANCE & LIQUIDITY

     24   

SCHEDULE OF LONG-TERM DEBT

     24   

SCHEDULE OF DEBT MATURITIES

     25   

SCHEDULE OF LIQUIDITY POSITION

     26   

SCHEDULE OF CHANGE IN CAPITALIZATION

     27   

HEDGING

     28   

RECONCILIATION OF FORECAST AND OUTLOOK

     29   

RECONCILIATION OF OPERATING EARNINGS GUIDANCE

     29   

GAAP RECONCILIATION

     31   

RECONCILIATION OF 2012 CONSOLIDATED OPERATING EARNINGS TO REPORTED EARNINGS

     31   

RECONCILIATION OF 2011 CONSOLIDATED OPERATING EARNINGS TO REPORTED EARNINGS

     32   

RECONCILIATION OF 2012 CORPORATE AND OTHER OPERATING EARNINGS TO REPORTED EARNINGS

     33   

RECONCILIATION OF 2011 DOMINION GENERATION EARNINGS TO REPORTED EARNINGS

     34   

RECONCILIATION OF 2011 CORPORATE AND OTHER OPERATING EARNINGS TO REPORTED EARNINGS

     35   

RECONCILIATION OF 2012 OPERATING EARNINGS TO REPORTED EARNINGS

     36   

RECONCILIATION OF 2011 OPERATING EARNINGS TO REPORTED EARNINGS

     37   

RECONCILIATION OF 1Q12 AND 4Q12 OPERATING EARNINGS TO REPORTED EARNINGS

     38   

RECONCILIATION OF 4Q11 OPERATING EARNINGS TO REPORTED EARNINGS

     39   

2013 EARNINGS EXPECTATIONS

     40   

APPENDIX

     41   

LIST OF REVISED SCHEDULES

     41   

 

 

 

February 28, 2013   2

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Important Notes to Investors

This kit contains certain forward-looking statements, including forecasted operating earnings for first-quarter and full-year 2013 which are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations may include factors that are beyond the company’s ability to control or estimate precisely, including fluctuations in energy-related commodity prices, estimates of future market conditions, additional competition in the electric industry, changes in the demand for Dominion’s services, access to and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, asset portfolio reviews and resulting decisions to acquire, divest or retire assets, the receipt of regulatory approvals for, and timing of, planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects within the terms and timeframes initially anticipated. Other factors include, but are not limited to, weather conditions and other events, including the effects of hurricanes, earthquakes, high winds, major storms and changes in water temperatures on operations, the risk associated with the operation of nuclear facilities, unplanned outages of Dominion’s generation facilities, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, political and economic conditions, industrial, commercial and residential growth or decline in Dominion’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, fluctuations in interest rates, changes in federal and state tax laws, employee workforce factors, including collective bargaining, counter-party credit and performance risks, adverse outcomes in litigation matters or regulatory proceedings, the risk of hostile cyber intrusions and other uncertainties. Other risk factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.

Certain information provided in this Release Kit includes financial measures that are not required by, or presented in accordance with generally accepted accounting principles (GAAP), including operating earnings before interest and taxes (EBIT) and operating earnings before interest, taxes, depreciation and amortization (EBITDA). These non-GAAP financial measures should not be considered as alternatives to GAAP measures, such as net income, operating income, or earnings per share, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. Dominion has included reconciliations to the most directly comparable financial measures it is able to calculate and report in accordance with GAAP.

The consolidated financial data and statistics in this Revised 4Q12 Earnings Release Kit and its individual components reflect the financial position and operating results of Dominion and its primary operating segments through December 31, 2012. Independent auditors have not audited any of the financial and operating statements. Projections or forecasts shown in this document are based on the assumptions listed in this document and are subject to change at any time. Dominion undertakes no obligation to update any forward-looking information statement to reflect developments after the statement is made.

This Revised 4Q12 Earnings Release Kit has been prepared primarily for securities analysts and investors in the hope that it will serve as a convenient and useful reference document. The format of this release kit may change in the future as we continue to try to meet the needs of securities analysts and investors. This release kit is not intended for use in connection with any sale, offer to sell, or solicitation of any offer to buy securities.

Please continue to check our website regularly at www.dom.com/investors for the most recent updates.

 

 

 

February 28, 2013   3

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Earnings Report and Accompanying Schedules

Earnings Report

SUMMARY OF DOMINION’S REVISED 2012 EARNINGS

As of February 28, 2013, Dominion’s reported earnings determined in accordance with Generally Accepted Accounting Principles (GAAP) for the 12 months ended Dec. 31, 2012, are $302 million ($0.53 per share), compared with reported earnings of $1.41 billion ($2.45 per share) for the same period in 2011.

Operating earnings for the 12 months ended Dec. 31, 2012, amounted to $1.75 billion ($3.05 per share), compared to originally reported operating earnings of $1.75 billion ($3.05 per share) for the same period in 2011. Operating earnings are defined as reported (GAAP) earnings adjusted for certain items.

Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion 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 management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.

The principal difference between GAAP earnings and operating earnings for fourth-quarter 2012 was an impairment charge of $1.01 billion related to fossil fuel-fired generating stations, which are in the process of being sold.

Business segment results and detailed descriptions of items included in 2012 and 2011 reported earnings but excluded from operating earnings can be found on Schedules 1, 2 and 3 of this release kit.

Full-year 2012 operating earnings compared to 2011

Full-year 2012 operating earnings per share were the same as compared to originally reported full-year 2011 operating earnings per share. Positive factors for the year were higher contributions from unregulated retail energy marketing operations, lower operations and maintenance expenses, benefit from our contribution of assets to the Blue Racer Midstream joint venture, lower interest expenses and a lower effective tax rate. Negative factors for the year were milder-than-normal weather in our regulated electric service territory, lower merchant generation margins and lower contributions from producer services.

 

 

 

February 28, 2013   4

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Fourth-quarter 2012 operating earnings compared to 2011

The increase in fourth-quarter 2012 operating earnings per share as compared to originally reported fourth-quarter 2011 operating earnings per share is primarily attributable to lower operations and maintenance expenses and benefit from our contribution of assets to the Blue Racer Midstream joint venture. Negative factors for the quarter were lower contributions from unregulated retail energy marketing operations and an extended outage at Millstone Unit 2.

Details of fourth-quarter 2012 operating earnings as compared to 2011 can be found on Schedule 4 of this release kit.

First-quarter 2013 and full-year 2013 operating earnings guidance

Dominion expects first-quarter 2013 operating earnings in the range of 80 cents per share to 95 cents per share as compared to first-quarter 2012 operating earnings of 85 cents per share. Positive factors for the first-quarter of 2013 compared to the same period of the prior year include an expected return to normal weather in our electric service territory, higher rate adjustment clause revenues and anticipated growth in our electric service territory as well as higher revenues related to our gas transmission growth projects. Negative factors for the quarter include higher operations and maintenance expenses and a higher effective tax rate. GAAP earnings for the first quarter of 2012 were 86 cents per share. A reconciliation between operating and GAAP earnings for the first quarter of 2012 can be found on Schedule 2 of this release kit.

Amounts for 2011 have been recast to reflect results for State Line and Salem Harbor generating stations as discontinued operations. However, Dominion uses originally reported 2011 amounts prior to recast to calculate operating earnings growth targets as well as for comparison to 2012 and 2013 operating earnings and statistics.

In providing its first-quarter and full-year 2013 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, divestitures or changes in accounting principles. At this time, Dominion management is not able to estimate the aggregate impact, if any, of these items on reported earnings, other than those as set forth on Schedule 2 – Reconciliation of 2012 Operating Earnings to Reported Earnings on page 8 of the Revised 4Q12 Earnings Release Kit. Accordingly, the company is not able to provide a corresponding GAAP equivalent for its operating earnings guidance.

 

 

 

February 28, 2013   5

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 27,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,300 miles of electric transmission lines. Dominion operates the nation’s largest natural gas storage system with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company’s website at www.dom.com.

This release contains certain forward-looking statements, including forecasted operating earnings for first-quarter and full-year 2013 which are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations may include factors that are beyond the company’s ability to control or estimate precisely, including fluctuations in energy-related commodity prices, estimates of future market conditions, additional competition in the electric industry, changes in the demand for Dominion’s services, access to and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, asset portfolio reviews and resulting decisions to acquire, divest or retire assets, the receipt of regulatory approvals for, and timing of, planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects within the terms and timeframes initially anticipated. Other factors include, but are not limited to, weather conditions and other events, including the effects of hurricanes, earthquakes, high winds, major storms and changes in water temperatures on operations, the risk associated with the operation of nuclear facilities, unplanned outages of Dominion’s generation facilities, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, political and economic conditions, industrial, commercial and residential growth or decline in Dominion’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, fluctuations in interest rates, changes in federal and state tax laws, employee workforce factors, including collective bargaining, counter-party credit and performance risks, adverse outcomes in litigation matters or regulatory proceedings, the risk of hostile cyber intrusions and other uncertainties. Other risk factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.

###

 

 

 

February 28, 2013   6

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule 1 – Segment Operating Earnings

Preliminary, Unaudited

 

                                   
(millions, except earnings per share)    Three months ended December 31,  
     2012     2011*     Change  

Earnings:

      

Dominion Virginia Power

   $ 131      $ 112      $ 19   

Dominion Energy

     189        153        36   

Dominion Generation

     137        117        20   

Corporate and Other

     (57     (48     (9
  

 

 

   

 

 

   

 

 

 

OPERATING EARNINGS

   $ 400      $ 334      $ 66   
  

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings 2, 3

     (1,059     (133     (926

REPORTED EARNINGS 1

   $ (659   $ 201      $ (860
  

 

 

   

 

 

   

 

 

 

Common Shares Outstanding (average, diluted)

     575.0        571.2     

Earnings Per Share (EPS):

      

Dominion Virginia Power

   $ 0.23      $ 0.20      $ 0.03   

Dominion Energy

     0.33        0.27        0.06   

Dominion Generation

     0.23        0.20        0.03   

Corporate and Other

     (0.10     (0.09     (0.01
  

 

 

   

 

 

   

 

 

 

OPERATING EARNINGS

   $ 0.69      $ 0.58      $ 0.11   
  

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings 2

     (1.84     (0.23     (1.61

REPORTED EARNINGS 1

   $ (1.15   $ 0.35      $ (1.50
  

 

 

   

 

 

   

 

 

 

 

                                   
(millions, except earnings per share)    Twelve months ended December 31,  
     2012     2011*     Change  

Earnings:

      

Dominion Virginia Power

   $ 559      $ 501      $ 58   

Dominion Energy

     551        521        30   

Dominion Generation

     874        1,003        (129

Corporate and Other

     (235     (271     36   
  

 

 

   

 

 

   

 

 

 

OPERATING EARNINGS

   $ 1,749      $ 1,754      $ (5
  

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings 2, 4

     (1,447     (346     (1,101

REPORTED EARNINGS 1

   $ 302      $ 1,408      $ (1,106
  

 

 

   

 

 

   

 

 

 

Common Shares Outstanding (average, diluted)

     573.9        574.6     

Earnings Per Share (EPS):

      

Dominion Virginia Power

   $ 0.98      $ 0.87      $ 0.11   

Dominion Energy

     0.96        0.91        0.05   

Dominion Generation

     1.52        1.74        (0.22

Corporate and Other

     (0.41     (0.47     0.06   
  

 

 

   

 

 

   

 

 

 

OPERATING EARNINGS

   $ 3.05      $ 3.05      $ (0.00
  

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings 2

     (2.52     (0.60     (1.92

REPORTED EARNINGS 1

   $ 0.53      $ 2.45      $ (1.92
  

 

 

   

 

 

   

 

 

 

 

1) Determined in accordance with Generally Accepted Accounting Principles (GAAP).
2) Items excluded from operating earnings are reported in Corporate and Other segment. Refer to Schedules 2 and 3 for details, or find “GAAP Reconciliation” on Dominion’s website at www.dom.com/investors.
3) Pre-tax amounts for the current period and the prior period are ($1.687) billion and ($255) million, respectively.
4) Pre-tax amounts for the current period and the prior period are ($2.283) billion and ($605) million, respectively.
* Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

 

 

 

February 28, 2013   7

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule 2 – Reconciliation of 2012 Operating Earnings to Reported Earnings

2012 Earnings (Twelve months ended December 31, 2012)

The net effects of the following items, all shown on an after-tax basis, are included in 2012 reported earnings, but are excluded from operating earnings:

 

 

$1.1 billion net loss, including an impairment charge, associated with certain fossil fuel-fired merchant power stations which Dominion decided to market for sale in the third quarter of 2012.

 

 

$303 million net loss, including impairment charges, primarily resulting from the planned shutdown of our Kewaunee nuclear merchant power station.

 

 

$53 million of restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina Power service territories.

 

 

$22 million net loss from discontinued operations of two merchant power stations (State Line and Salem Harbor) which were sold in 2012.

 

 

$5 million net benefit related to other items.

 

(millions, except per share amounts)

   1Q12      2Q12     3Q12     4Q12     YTD 2012  2  

Operating earnings

   $ 486       $ 337      $ 526      $ 400      $ 1,749   

Items excluded from operating earnings (after-tax):

           

Fossil fuel-fired merchant power stations

          (45     (1,029     (1,074

Kewaunee power station

     2         (18     (281     (6     (303

Severe storms

        (45     3        (11     (53

Discontinued operations - State Line & Salem Harbor

     1         (18     (5       (22

Other items

     5         2        11        (13     5   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total items excluded from operating earnings (after-tax) 1

     8         (79     (317     (1,059     (1,447
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Reported net income

   $ 494       $ 258      $ 209      ($ 659   $ 302   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Common shares outstanding (average, diluted)

     571.9         573.1        574.7        575.0        573.9   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings per share

   $ 0.85       $ 0.59      $ 0.92      $ 0.69      $ 3.05   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings (after-tax)

     0.01         (0.14     (0.56     (1.84     (2.52
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Reported earnings per share

   $ 0.86       $ 0.45      $ 0.36      ($ 1.15   $ 0.53   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

1) Pre-tax amounts for items excluded from operating earnings are reflected in the following table:

 

     1Q12      2Q12     3Q12     4Q12     YTD 2012  

Items excluded from operating earnings:

           

Fossil fuel-fired merchant power stations

          (34     (1,670     (1,704

Kewaunee power station

     3         (26     (435     (9     (467

Severe storms

        (74     5        (18     (87

Discontinued operations - State Line & Salem Harbor

     2         (32     (19       (49

Other items

     8         3        3        10        24   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total items excluded from operating earnings

   $ 13       ($ 129   ($ 480   ($ 1,687   ($ 2,283
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

2) YTD 2012 EPS may not equal sum of quarters due to share count differences.

 

 

 

February 28, 2013   8

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule 3 – Reconciliation of 2011 Original Operating Earnings to Reported Earnings

2011 Earnings (Twelve months ended December 31, 2011) 3

The net effects of the following items, all shown on an after-tax basis, are included in 2011 reported earnings, but are excluded from operating earnings:

 

 

$178 million of impairment charges related to certain utility ($139 million) and merchant ($39 million) coal-fired power stations.

 

 

$59 million of restoration costs associated with Hurricane Irene.

 

 

$39 million net loss from operations at our Kewaunee nuclear merchant power station.

 

 

$34 million impairment of excess emission allowances resulting from a new EPA air pollution rule.

 

 

$21 million of severance costs and other charges related to our State Line and Salem Harbor merchant power stations.

 

 

$19 million net charge in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009-2010 test years.

 

 

$13 million of earthquake related costs, largely related to inspections following the safe shutdown of reactors at our North Anna nuclear power station.

 

 

$14 million benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at Millstone nuclear power station.

 

 

$3 million net benefit related to other items.

 

(millions, except per share amounts)

   1Q11     2Q11     3Q11     4Q11     YTD 2011 2  

Operating earnings

   $ 541      $ 338      $ 541      $ 334      $ 1,754   

Items excluded from operating earnings (after-tax):

          

Impairment of generation assets

     (39         (139     (178

Hurricane Irene costs

         (74     15        (59

Kewaunee operations

     (19     (1     (12     (7     (39

Emission allowances impairments

         (34       (34

Charges related to State Line & Salem Harbor operations

       (11     (10       (21

Impact of Virginia Power biennial review order

           (19     (19

Earthquake costs

         (13       (13

Recoverable spent nuclear fuel-related costs

       14            14   

Other items

     (4     (4     (6     17        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total items excluded from operating earnings (after-tax) 1

     (62     (2     (149     (133     (346
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported net income

   $ 479      $ 336      $ 392      $ 201      $ 1,408   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common shares outstanding (average, diluted)

     580.5        575.2        571.2        571.2        574.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings per share

   $ 0.93      $ 0.59      $ 0.95      $ 0.58      $ 3.05   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings (after-tax)

     (0.11     (0.01     (0.26     (0.23     (0.60
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reported earnings per share

   $ 0.82      $ 0.58      $ 0.69      $ 0.35      $ 2.45   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

1) 

Pre-tax amounts for items excluded from operating earnings are reflected in the following table:

 

      1Q11     2Q11     3Q11     4Q11     YTD 2011  

Items excluded from operating earnings:

          

Impairment of generation assets

     (55         (228     (283

Hurricane Irene costs

         (121     25        (96

Kewaunee operations

     (32     (5     (19     (10     (66

Emission allowances impairments

         (57       (57

Charges related to State Line & Salem Harbor operations

       (17     (16       (33

Impact of Virginia Power biennial review order

           (31     (31

Earthquake costs

         (21       (21

Recoverable spent nuclear fuel-related costs

       24            24   

Other items

     6        (8     (29     (11     (42
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total items excluded from operating earnings

   ($ 81   ($ 6   ($ 263   ($ 255   ($ 605
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

2) 

YTD 2011 EPS may not equal sum of quarters due to share count differences.

3) 

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

 

 

 

February 28, 2013   9

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule 4 – Reconciliation of 2012 Earnings to 2011

 

Preliminary, unaudited    Three Months Ended     Twelve Months Ended  
(millions, except EPS)    December 31,     December 31,  
     2012 vs. 20111     2012 vs. 20111  
     Increase / (Decrease)     Increase / (Decrease)  

Reconciling Items

   Amount     EPS     Amount     EPS  

Dominion Virginia Power

        

Regulated electric sales:

        

Weather

   $ 5      $ 0.01      ($ 34   ($ 0.06

Other

     9        0.01        28        0.05   

FERC Transmission equity return

     4        0.01        19        0.04   

Retail energy marketing operations

     (10     (0.02     35        0.06   

Storm damage and service restoration

     1        0.00        14        0.03   

Other

     10        0.02        (4     (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in contribution to operating earnings

   $ 19      $ 0.03      $ 58      $ 0.11   

Dominion Energy

        

Gas Distribution weather

   $ 1      $ 0.00      ($ 5   ($ 0.01

Gas Transmission margin

     14        0.02        8        0.01   

Producer Services margin

     (5     (0.01     (13     (0.02

Blue Racer Midstream JV

     43        0.08        43        0.08   

Other

     (17     (0.03     (3     (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in contribution to operating earnings

   $ 36      $ 0.06      $ 30      $ 0.05   

Dominion Generation

        

Regulated electric sales:

        

Weather

   $ 10      $ 0.02      ($ 78   ($ 0.14

Other

     11        0.02        46        0.08   

Merchant generation margin

     (13     (0.02     (109     (0.19

Brayton Point, Kincaid and Elwood 2011 earnings

     16        0.02        7        0.01   

State Line and Salem Harbor 2011 earnings

     (2     0.00        (35     (0.06

Rate adjustment clause equity return

     10        0.02        17        0.03   

PJM ancillary services

     1        0.00        (27     (0.05

Net capacity expenses

     2        0.00        19        0.04   

Outage costs

     (13     (0.02     8        0.01   

Other

     (2     (0.01     23        0.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in contribution to operating earnings

   $ 20      $ 0.03      ($ 129   ($ 0.22

Corporate and Other

        

Change in contribution to operating earnings

   ($ 9   ($ 0.01   $ 36      $ 0.06   
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in consolidated operating earnings

   $ 66      $ 0.11      ($ 5   $ 0.00   

Change in items excluded from operating earnings 2

   ($ 926   ($ 1.61   ($ 1,101   ($ 1.92
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in reported earnings (GAAP)

   ($ 860   ($ 1.50   ($ 1,106   ($ 1.92
  

 

 

   

 

 

   

 

 

   

 

 

 

 

1)

Reflects 2011 amounts prior to recast of operating results of State Line and Salem Harbor generating stations as discontinued operations.

2)

Refer to Schedules 2 and 3 for details of items excluded from operating earnings, or find “GAAP Reconciliation” on Dominion’s website at www.dom.com/investors.

 

 

 

February 28, 2013   10

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Financials

Consolidated Financial Statements (GAAP)

Dominion Resources, Inc.

Consolidated Statements of Income *

Unaudited (GAAP Based)

 

     Three Months Ended      Years Ended  
     December 31,      December 31,  
     2012     20111      2012     20111  
     (millions, except per share amounts)  

Operating Revenue

   $ 3,167      $ 3,129       $ 13,093      $ 14,145   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating Expenses

         

Electric fuel and other energy-related purchases

     855        902         3,748        4,097   

Purchased electric capacity

     90        110         387        454   

Purchased gas

     359        422         1,177        1,764   

Other operations and maintenance

     2,319        935         4,868        3,322   

Depreciation, depletion and amortization

     304        283         1,186        1,066   

Other taxes

     132        137         571        548   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     4,059        2,789         11,937        11,251   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income from operations

     (892     340         1,156        2,894   
  

 

 

   

 

 

    

 

 

   

 

 

 

Other income

     49        66         223        178   

Interest and related charges

     215        176         882        867   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations including noncontrolling interests before income taxes

     (1,058     230         497        2,205   

Income tax expense

     (406     24         146        754   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income from continuing operations including noncontrolling interests

     (652     206         351        1,451   
  

 

 

   

 

 

    

 

 

   

 

 

 

Loss from discontinued operations (net of tax)

     —          1         (22     (25
  

 

 

   

 

 

    

 

 

   

 

 

 

Net Income including noncontrolling interests

   $ (652   $ 207       $ 329      $ 1,426   

Noncontrolling interests

     7        6         27        18   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net Income attributable to Dominion

   $ (659   $ 201       $ 302      $ 1,408   
  

 

 

   

 

 

    

 

 

   

 

 

 

Reported earnings per common share - diluted

   $ (1.15   $ 0.35       $ 0.53      $ 2.45   
  

 

 

   

 

 

    

 

 

   

 

 

 

Average shares outstanding, diluted

     575.0        571.2         573.9        574.6   

 

* 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.
1) Consolidated Statements of Income for the three months ended and year ended December 31, 2011 have been recast to reflect Salem Harbor and State Line as discontinued operations.

 

 

 

February 28, 2013   11

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion Resouces, Inc.

Consolidated Balance Sheets *

Unaudited & Summarized

($ in Millions)

 

     At December 31,  
     2012      2011  

Assets

     

Current Assets

   $ 5,140       $ 5,430   

Investments

     4,191         3,985   

Property, Plant and Equipment, Net

     30,773         29,670   

Deferred Charges and Other Assets

     6,734         6,529   
  

 

 

    

 

 

 

Total Assets

   $ 46,838       $ 45,614   
  

 

 

    

 

 

 

Liabilities and Equity

     

Securities due within one year

   $ 1,363       $ 1,479   

Securities due within one year, VIE

     860         —     

Short-term debt

     2,412         1,814   

Other current liabilities

     3,128         3,669   
  

 

 

    

 

 

 

Total Current Liabilities

     7,763         6,962   

Long-Term Debt

     16,851         17,394   

Deferred Credits and Other Liabilities

     11,342         9,498   
  

 

 

    

 

 

 

Total Liabilities

     35,956         33,854   

Subsidiary Preferred Stock Not Subject To Mandatory Redemption

     257         257   

Common Shareholders’ Equity

     10,568         11,446   

Noncontrolling Interest

     57         57   
  

 

 

    

 

 

 

Total Equity

     10,625         11,503   

Total Liabilities and Equity

   $ 46,838       $ 45,614   
  

 

 

    

 

 

 

 

* 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.

 

 

 

February 28, 2013   12

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion Resources, Inc.

Consolidated Statements of Cash Flows *

Unaudited & Summarized

($ in Millions)

 

     Year Ended December 31,  
     2012     2011  

Operating Activities

    

Net Income including noncontrolling interests

   $ 329      $ 1,426   

Adjustments to reconcile net income to net cash provided by operating activities

    

Impairment of generation assets

     2,089        283   

Depreciation, depletion and amortization (including nuclear fuel)

     1,443        1,288   

Deferred income taxes and investment tax credits, net

     246        756   

Other adjustments

     (396     (204

Changes in:

    

Accounts receivable

     292        365   

Inventories

     33        (185

Deferred fuel and purchased gas costs, net

     368        (3

Prepayments

     (85  

Accounts payable

     (61     (413

Accrued interest, payroll and taxes

     (12     (216

Other operating assets and liabilities

     (109     (114
  

 

 

   

 

 

 

Net cash provided by operating activities

     4,137        2,983   

Investing Activities

    

Plant construction and other property additions

     (4,145     (3,652

Restricted cash equivalents

     108        259   

Other

     197        72   
  

 

 

   

 

 

 

Net cash used in investing activities

     (3,840     (3,321

Financing Activities

    

Issuance of short-term debt, net

     598        429   

Issuance of short-term notes

     400     

Issuance and remarketing of long-term debt

     1,500        2,320   

Repayment and repurchase of long-term debt

     (1,675     (637

Issuance of common stock

     265        38   

Repurchase of common stock

     —          (601

Common dividend payments

     (1,209     (1,129

Other

     (30     (42
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (151     378   

Increase in cash and cash equivalents

     146        40   

Cash and cash equivalents at beginning of period

     102        62   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 248      $ 102   
  

 

 

   

 

 

 

 

* 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.

 

 

 

February 28, 2013   13

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Segment Operating Earnings Results

 

Dominion Consolidated3    Three Months Ended     Year Ended  
Unaudited Summary of Operating results    December 31,     December 31,  
($mm except per share amounts)    2012     20111     2012     20111  

Operating Revenue

   $ 3,050      $ 3,216      $ 12,762      $ 14,314   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

        

Electric fuel and other energy-related purchases

     823        915        3,650        4,152   

Purchased electric capacity

     90        110        387        454   

Purchased gas

     359        403        1,177        1,745   

Other operations and maintenance

     578        717        2,446        2,849   

Depreciation, depletion and amortization

     288        282        1,148        1,068   

Other taxes

     126        137        551        545   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,264        2,564        9,359        10,813   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     786        652        3,403        3,501   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income

     37        56        159        176   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     823        708        3,562        3,677   

Interest and related charges

     194        223        832        901   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     629        485        2,730        2,776   

Income taxes

     222        145        954        1,004   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests

     407        340        1,776        1,772   

Noncontrolling interests

     7        6        27        18   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Earnings

   $ 400      $ 334      $ 1,749      $ 1,754   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Earnings Per Share

   $ 0.69      $ 0.58      $ 3.05      $ 3.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings (net of taxes)2

     (1,059     (133     (1,447     (346
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported Earnings

   $ (659   $ 201      $ 302      $ 1,408   
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported Earnings Per Common Share - Diluted

     (1.15   $ 0.35      $ 0.53      $ 2.45   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average shares outstanding, diluted

     575.0        571.2        573.9        574.6   

 

1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

2)

For additional detail on items excluded from operating earnings see the GAAP Reconciliation schedules on pages 31-35.

3)

Dominion Consolidated Income Statement reflects the impact of segment eliminations and adjustments.

 

 

 

February 28, 2013   14

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion Virginia Power    Three Months Ended      Year Ended  
Unaudited Summary of Operating results    December 31,      December 31,  
($mm except per share amounts)    2012      2011      2012      2011  

Operating Revenue

   $ 843       $ 901       $ 3,497       $ 3,836   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Expenses

           

Electric fuel and other energy-related purchases

     197         216         865         1,069   

Purchased electric capacity

     —           10         16         46   

Purchased gas

     147         166         456         648   

Other operations and maintenance

     124         163         576         620   

Depreciation, depletion and amortization

     102         96         402         374   

Other taxes

     33         33         144         142   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     603         684         2,459         2,899   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     240         217         1,038         937   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other income

     17         15         67         75   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests before interest and income taxes

     257         232         1,105         1,012   

Interest and related charges

     42         44         187         185   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests before income taxes

     215         188         918         827   

Income taxes

     82         74         351         318   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests

     133         114         567         509   

Noncontrolling interests

     2         2         8         8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Earnings Contribution

   $ 131       $ 112       $ 559       $ 501   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Earnings Per Share Contribution

   $ 0.23       $ 0.20       $ 0.98       $ 0.87   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average shares outstanding, diluted

     575.0         571.2         573.9         574.6   

 

 

 

February 28, 2013   15

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion Energy    Three Months Ended      Year Ended  
Unaudited Summary of Operating results    December 31,      December 31,  
($mm except per share amounts)    2012      2011      2012      2011  

Operating Revenue

   $ 764       $ 775       $ 2,743       $ 3,121   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Expenses

           

Electric fuel and other energy-related purchases

     17         6         42         18   

Purchased electric capacity

     —           —           —           —     

Purchased gas

     246         271         927         1,176   

Other operations and maintenance

     85         155         501         703   

Depreciation, depletion and amortization

     55         57         216         207   

Other taxes

     46         48         172         177   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     449         537         1,858         2,281   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     315         238         885         840   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other income

     15         20         65         61   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests before interest and income taxes

     330         258         950         901   

Interest and related charges

     12         14         47         57   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests before income taxes

     318         244         903         844   

Income taxes

     129         91         352         323   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests

     189         153         551         521   

Noncontrolling interests

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Earnings Contribution

   $ 189       $ 153       $ 551       $ 521   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Earnings Per Share Contribution

   $ 0.33       $ 0.27       $ 0.96       $ 0.91   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average shares outstanding, diluted

     575.0         571.2         573.9         574.6   

 

 

 

February 28, 2013   16

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion Generation    Three Months Ended      Year Ended  
Unaudited Summary of Operating results    December 31,      December 31,  
($mm except per share amounts)    2012      20111      2012      20111  

Operating Revenue

   $ 1,505       $ 1,634       $ 6,850       $ 7,670   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Expenses

           

Electric fuel and other energy-related purchases

     631         731         2,840         3,210   

Purchased electric capacity

     90         100         371         408   

Purchased gas

     —           —           —           —     

Other operations and maintenance

     375         420         1,398         1,617   

Depreciation, depletion and amortization

     123         122         500         459   

Other taxes

     47         55         214         204   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expenses

     1,266         1,428         5,323         5,898   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     239         206         1,527         1,772   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other income

     18         24         53         61   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests before interest and income taxes

     257         230         1,580         1,833   

Interest and related charges

     39         56         208         219   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests before income taxes

     218         174         1,372         1,614   

Income taxes

     76         53         479         601   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income including noncontrolling interests

     142         121         893         1,013   

Noncontrolling interests

     5         4         19         10   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Earnings Contribution

   $ 137       $ 117       $ 874       $ 1,003   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Earnings Per Share Contribution

   $ 0.23       $ 0.20       $ 1.52       $ 1.74   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average shares outstanding, diluted

     575.0         571.2         573.9         574.6   

 

1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

 

 

 

February 28, 2013   17

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Corporate and Other    Three Months Ended     Year Ended  
Unaudited Summary of Operating Results    December 31,     December 31,  
($mm except per share amounts)    2012     20111     2012     20111  

Operating Revenue

   $ 148      $ 149      $ 584      $ 585   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

        

Electric fuel and other energy-related purchases

     —          —          —          —     

Purchased electric capacity

     —          —          —          —     

Purchased gas

     1        1        3        5   

Other operations and maintenance

     147        149        577        578   

Depreciation, depletion and amortization

     8        7        30        28   

Other taxes

     —          1        21        22   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     156        158        631        633   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (8     (9     (47     (48
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income

     13        25        80        85   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     5        16        33        37   

Interest and related charges

     127        137        496        546   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     (122     (121     (463     (509

Income taxes

     (65     (73     (228     (238
  

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests

     (57     (48     (235     (271

Noncontrolling interests

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Earnings (Loss) Contribution

   $ (57   $ (48   $ (235   $ (271
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Earnings (Loss) Per Share Contribution

   $ (0.10   $ (0.09   $ (0.41   $ (0.47
  

 

 

   

 

 

   

 

 

   

 

 

 

Items excluded from operating earnings (net of taxes)2

     (1,059     (133     (1,447     (346
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported Earnings

   $ (1,116   $ (181   $ (1,682   $ (617
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported Earnings Per Common Share - Diluted

   $ (1.94   $ (0.32   $ (2.93   $ (1.07
  

 

 

   

 

 

   

 

 

   

 

 

 

Average shares outstanding, diluted

     575.0        571.2        573.9        574.6   

 

1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

2)

For additional detail on items excluded from operating earnings see the GAAP Reconciliation schedules on pages 31-35.

 

 

 

February 28, 2013   18

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Dominion

Unaudited Operating Revenue Detail (GAAP Based)

(millions)

 

     Three Months Ended     Year Ended  
     December 31,     December 31,  
     2012      20111     2012      20111  

Dominion Consolidated

          

Operating Revenue

          

Electric sales:

  

Regulated

   $ 1,607       $ 1,520      $ 7,102       $ 7,114   
  

Nonregulated

     620         635        2,742         3,100   

Gas sales:

  

Regulated

     84         79        250         287   
  

Nonregulated

     331         415        1,071         1,635   

Gas transportation and storage

     394         355        1,401         1,506   

Other

        131         125        527         503   
     

 

 

    

 

 

   

 

 

    

 

 

 

Total operating revenue

   $ 3,167       $ 3,129      $ 13,093       $ 14,145   

Dominion Virginia Power

          

Operating Revenue

          

Electric sales:

  

Regulated

   $ 420       $ 411      $ 1,783       $ 1,730   
  

Nonregulated

     227         259        1,054         1,210   

Gas sales:

  

Regulated

     —           —          —           —     
  

Nonregulated

     169         187        534         719   

Gas transportation and storage

     —           1        4         4   

Other

        27         43        122         173   
     

 

 

    

 

 

   

 

 

    

 

 

 

Total operating revenue

   $ 843       $ 901      $ 3,497       $ 3,836   

Dominion Energy

          

Operating Revenue

          

Gas sales:

  

Regulated

     84         79        250         287   
  

Nonregulated

     186         250        703         957   

Gas transportation and storage

     399         358        1,420         1,525   

Other

        95         88        370         352   
     

 

 

    

 

 

   

 

 

    

 

 

 

Total operating revenue

   $ 764       $ 775      $ 2,743       $ 3,121   

Dominion Generation

          

Operating Revenue

          

Electric sales:

  

Regulated

   $ 1,187       $ 1,191      $ 5,319       $ 5,478   
  

Nonregulated

     304         379        1,472         1,891   

Other

        14         16        59         66   
     

 

 

    

 

 

   

 

 

    

 

 

 

Total operating revenue

   $ 1,505       $ 1,586      $ 6,850       $ 7,435   

Corporate and Other

          

Operating Revenue

          

Electric sales:

  

Regulated

   $ —         $ (82   $ —         $ (94
  

Nonregulated

     115         39        327         154   

Gas sales:

  

Regulated

     —           —          —           —     
  

Nonregulated

     1         5        4         8   

Gas transportation and storage

     —           —          —           —     

Other

        149         148        584         583   
     

 

 

    

 

 

   

 

 

    

 

 

 

Total operating revenue

   $ 265       $ 110      $ 915       $ 651   

 

1)

Amounts have been recast to reflect the results of State Line and Salem Harbor generating stations as discontinued operations.

 

 

 

February 28, 2013   19

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Operating Statistics

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012      2011     2012      2011  

Dominion Consolidated

          

Regulated Electric Sales Revenue ($mm)

          

Residential

   $ 707       $ 685      $ 3,212       $ 3,251   

Commercial

     516         531        2,284         2,273   

Industrial

     109         115        481         474   

Governmental

     185         189        760         811   
  

 

 

    

 

 

   

 

 

    

 

 

 

Regulated retail revenue

     1,517         1,521        6,737         6,809   

Wholesale - sales for resale

     46         46        191         204   

Other revenue

     44         (47     174         101   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 1,607       $ 1,520      $ 7,102       $ 7,114   
  

 

 

    

 

 

   

 

 

    

 

 

 

Dominion Virginia Power

          

Degree Days (Electric service area)

          

Cooling

          

Actual

     53         30        1,787         1,899   

Normal

     43         46        1,587         1,557   

Heating

          

Actual

     1,248         1,052        2,955         3,354   

Normal

     1,306         1,318        3,622         3,619   

Electric Delivery Customers (at period end)

          

Residential

     2,197,763         2,178,321        2,197,763         2,178,321   

Commercial

     235,579         234,190        235,579         234,190   

Industrial

     502         528        502         528   

Governmental

     32,425         32,317        32,425         32,317   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total Retail

     2,466,269         2,445,356        2,466,269         2,445,356   

Wholesale - sales for resale

     5         5        5         5   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     2,466,274         2,445,361        2,466,274         2,445,361   
  

 

 

    

 

 

   

 

 

    

 

 

 

Electricity Delivered (GWh)

          

Residential

     6,802         6,394        29,174         30,769   

Commercial

     6,865         6,633        28,927         28,949   

Industrial

     1,875         1,860        7,849         7,960   

Governmental

     2,570         2,555        10,774         10,823   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total Retail

     18,112         17,443        76,724         78,500   

Wholesale - sales for resale

     990         933        4,029         3,814   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     19,102         18,375        80,753         82,315   
  

 

 

    

 

 

   

 

 

    

 

 

 

Dominion Retail

          

Unregulated Energy Customer Accounts (Average)

          

Natural Gas

     550,247         549,145        552,079         558,194   

Electric

     695,149         737,379        699,567         764,753   

Products and Services

     885,304         863,421        876,978         828,816   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     2,130,700         2,149,944        2,128,624         2,151,763   
  

 

 

    

 

 

   

 

 

    

 

 

 

Volumes Sold

          

Natural Gas (mmcf)

     25,887         23,794        87,587         95,719   

Electricity (MWh)

     3,345,650         2,197,561        13,889,548         12,995,215   

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   20

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2012      2011      2012      2011  

Dominion Energy

           

Gas Distribution

           

Regulated Gas Revenue ($mm)

           

Gas sales revenue

           

Residential

   $ 63       $ 66       $ 194       $ 246   

Commercial

     11         11         35         36   

Industrial

     1         1         3         2   

Other

     2         1         3         3   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 77       $ 79       $ 235       $ 287   
  

 

 

    

 

 

    

 

 

    

 

 

 

Regulated Gas Transportation and Storage Revenue ($mm)

           

Gas transportation revenue

           

Residential

   $ 96       $ 89       $ 358       $ 413   

Commercial

     34         31         117         155   

Industrial

     15         14         56         58   

Other

     —           1         2         3   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total transportation revenue

     145         134         533         629   
  

 

 

    

 

 

    

 

 

    

 

 

 

Storage revenue

     4         4         16         15   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 149       $ 139       $ 549       $ 644   
  

 

 

    

 

 

    

 

 

    

 

 

 

Degree Days

           

Heating

           

Actual

     1,956         1,740         4,986         5,584   

Normal

     2,005         2,069         5,713         5,888   

LDC Natural Gas Customers (Average)

           

Gas sales customers

           

Residential

     242,634         253,184         239,946         245,698   

Commercial

     11,459         11,361         10,803         10,672   

Industrial

     31         30         30         27   

Other

     25         25         25         25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     254,149         264,600         250,804         256,422   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gas transportation customers

           

Residential

     956,866         946,069         962,432         957,845   

Commercial

     79,954         79,540         80,475         80,613   

Industrial

     1,610         1,549         1,569         1,563   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,038,430         1,027,158         1,044,476         1,040,021   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total LDC natural gas customers

           

Residential

     1,199,500         1,199,253         1,202,378         1,203,543   

Commercial

     91,413         90,901         91,278         91,285   

Industrial

     1,641         1,579         1,599         1,590   

Other

     25         25         25         25   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,292,579         1,291,758         1,295,280         1,296,443   
  

 

 

    

 

 

    

 

 

    

 

 

 

LDC Natural Gas Delivery (mmcf)

           

Gas sales volume

           

Residential

     7,369         7,327         21,621         25,377   

Commercial

     1,293         1,207         3,782         4,016   

Industrial

     128         109         444         374   

Other

     253         92         427         424   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     9,044         8,735         26,273         30,191   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gas transportation volume

           

Residential

     26,793         23,875         81,925         90,028   

Commercial

     15,001         13,655         47,697         52,849   

Industrial

     30,352         25,355         123,330         103,067   

Other

     1,503         2,000         5,632         7,098   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     73,648         64,885         258,586         253,042   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total LDC natural gas throughput

           

Residential

     34,162         31,202         103,546         115,405   

Commercial

     16,294         14,862         51,479         56,865   

Industrial

     30,480         25,464         123,774         103,441   

Other

     1,756         2,092         6,059         7,522   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     82,692         73,620         284,859         283,233   
  

 

 

    

 

 

    

 

 

    

 

 

 

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   21

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2012      2011      2012      2011  

Dominion Energy

           

Gas Transmission

           

Natural Gas Liquids sales (million gallons)

     44.7         48.2         182.4         176.2   

Average Realized NGL Price with Hedging ($/gal)

   $ 1.33       $ 1.49       $ 1.34       $ 1.46   

Gas Shrinkage Cost ($mm)

   $ 16.2       $ 18.8       $ 60.1       $ 73.0   

Dominion Generation

           

Regulated Generation

           

Electricity Sold (GWh) to VP/NCP customers

           

Residential

     6,802         6,394         29,174         30,769   

Commercial

     6,865         6,633         28,927         28,949   

Industrial

     1,875         1,860         7,849         7,960   

Governmental

     2,570         2,555         10,774         10,823   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Retail

     18,112         17,443         76,724         78,500   

Wholesale - sales for resale

     990         933         4,029         3,814   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     19,102         18,375         80,753         82,315   
  

 

 

    

 

 

    

 

 

    

 

 

 

Merchant Generation

           

Total Electric Sales (GWh)

           

NEPOOL Merchant Fleet 1

     3,928         4,031         18,925         17,710   

PJM Merchant Fleet 2

     1,990         1,761         8,241         7,216   

 

1)

Comprised of Millstone and Manchester generating stations.

2)

Comprised of Fairless generating station.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   22

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

2012 Weather Variance

Dominion - Effect of weather compared to normal 1

 

Pre-tax Impact ($millions)  

Description

   1Q12     2Q12     3Q12     4Q12     FY2012  

Gas Distribution 2

   ($ 8.3   ($ 1.3   $ 0.7      ($ 0.6   ($ 9.5

Electric Distribution 3

     (30.3     (15.2     (2.0     (17.5     (65.0

Electric Transmission 3

     (0.3     (0.3     0.2        (0.2     (0.6

Utility Generation (VaP) 4

     (61.0     (33.3     (5.2     (35.1     (134.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Impact (pre-tax)

   ($ 99.9   ($ 50.1   ($ 6.3   ($ 53.3   ($ 209.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
After-tax Impact ($millions)  

Description

   1Q12     2Q12     3Q12     4Q12     FY2012  

Gas Distribution 2

   ($ 5.4   ($ 0.9   $ 0.5      ($ 0.3   ($ 6.1

Electric Distribution 3

     (18.5     (9.3     (1.2     (10.7     (39.7

Electric Transmission 3

     (0.2     (0.2     0.1        (0.1     (0.4

Utility Generation (VaP) 4

     (37.2     (20.3     (3.2     (21.4     (82.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Impact (after-tax)

   ($ 61.3   ($ 30.7   ($ 3.8   ($ 32.5   ($ 128.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Dominion - Effect of weather compared to prior period 1   
Pre-tax Impact ($millions)  

Description

   1Q’12 v. ‘11     2Q’12 v. ‘11     3Q’12 v. ‘11     4Q’12 v. ‘11     FY ‘12 v. ‘11  

Gas Distribution 2

   ($ 10.0   ($ 0.6   $ 0.6        2.2      ($ 7.8

Electric Distribution 3

     (29.8     (16.3     (17.8     8.5        (55.4

Electric Transmission 3

     (0.4     (0.2     (0.2     —          (0.8

Utility Generation (VaP) 4

     (60.5     (37.0     (46.8     16.2        (128.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Impact (pre-tax)

   ($ 100.7   ($ 54.1   ($ 64.2   $ 26.9      ($ 192.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
After-tax Impact ($millions)  

Description

   1Q’12 v. ‘11     2Q’12 v. ‘11     3Q’12 v. ‘11     4Q’12 v. ‘11     FY ‘12 v. ‘11  

Gas Distribution 2

   ($ 6.3   ($ 0.4   $ 0.4        1.4      ($ 4.9

Electric Distribution 3

     (18.2     (9.9     (10.9     5.2        (33.8

Electric Transmission 3

     (0.2     (0.1     (0.1     —          (0.4

Utility Generation (VaP) 4

     (36.9     (22.6     (28.5     9.9        (78.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Impact (after-tax)

   ($ 61.6   ($ 33.0   ($ 39.1   $ 16.5      ($ 117.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

1) The effects on earnings from differences in weather compared to normal and compared to prior periods are measured using base rate revenue. This schedule does not reflect the O&M expenditures for restoring service associated with outages caused by major storms.
2) Reported in the Dominion Energy segment. Comprised of Dominion East Ohio Gas Company and Hope Gas, Inc.
3) Reported in the Dominion Virginia Power segment.
4) Reported in the Dominion Generation segment.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   23

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Finance & Liquidity

Schedule of Long-Term Debt

Preliminary & Unaudited ($ in millions)

 

     At 12/31
2011
    At 3/31
2012
    At 6/30
2012
    At 9/30
2012
    At 12/31
2012
 

Dominion Resources, Inc.

          

Unsecured Senior Notes:

          

Variable rate, due 2013

   $ —        $ —        $ —        $ —        $ 400   

1.4% to 7.195%, due 2012 to 2017 1

   $ 3,545      $ 3,545      $ 3,545      $ 3,041      $ 3,041   

2.75% to 8.875%, due 2018 to 2042

   $ 4,399      $ 4,399      $ 4,399      $ 5,099      $ 5,099   

Unsecured Debentures and Senior Notes (previously issued by CNG):

          

5.0% and 6.625%, due 2013 and 2014

   $ 622      $ 622      $ 622      $ 622      $ 622   

6.8% and 6.875%, due 2026 and 2027

   $ 89      $ 89      $ 89      $ 89      $ 89   

Unsecured Convertible Senior Notes, 2.125%, due 2023 2

   $ 143      $ 137      $ 82      $ 82      $ 82   

Unsecured Junior Subordinated Notes Payable to Affiliated Trusts, 7.83% and 8.4%, due 2027 and 2031 3

   $ 268      $ 268      $ 268      $ 268      $ 268   

Enhanced Junior Subordinated Notes:

          

7.5% and 8.375%, due 2064 and 2066

   $ 985      $ 985      $ 985      $ 985      $ 985   

Variable rate, due 2066 4

   $ 468      $ 382      $ 380      $ 380      $ 380   

Virginia Electric and Power Company

          

Unsecured Senior Notes:

          

4.75% to 8.625%, due 2012 to 2017

   $ 2,321      $ 2,319      $ 2,313      $ 2,311      $ 1,706   

2.95% to 8.875%, due 2018 to 2038

   $ 3,558      $ 4,008      $ 4,008      $ 4,008      $ 4,008   

Tax-Exempt Financings:

          

Variable rates, due 2016 to 2041

   $ 454      $ 454      $ 454      $ 454      $ 454   

1.5% to 6.5%, due 2017 to 2040 5

   $ 533      $ 533      $ 533      $ 533      $ 508   

Dominion Energy, Inc.

          

Secured Senior Notes:

          

5.03% to 5.78%, due 2013

   $ 842      $ 842      $ 842      $ 842      $ 842   

7.33%, due 2020

   $ 159      $ 159      $ 152      $ 152      $ 145   

Tax-Exempt Financings:

          

2.25% to 5.75%, due 2033 to 2042

   $ 284      $ 284      $ 284      $ 284      $ 284   

Variable rate, due 2041

   $ 75      $ 75      $ 75      $ 75      $ 75   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Principal Amount

   $ 18,745      $ 19,101      $ 19,031      $ 19,225      $ 18,988   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fair Value Hedge Valuation

     105        93        103        93        93   

Amounts Due Within One Year

     (1,479     (2,131     (2,141     (2,175     (2,223

Unamortized Discount & Premium, net

     23        16        10        1        (7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Long-Term Debt

   $ 17,394      $ 17,079      $ 17,003      $ 17,144      $ 16,851   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

1) 

$334 million of Dominion’s 6.25% 2002 Series B Senior Notes matured June 30, 2012 but remained on the second quarter balance sheet because the corresponding cash flow did not occur until the next succeeding business day which was in the third quarter of 2012.

2) 

$6 million and $55 million of the Convertible Senior Notes were converted into cash and common stock during first and second quarters of 2012, respectively.

3) 

The $258 million 7.83% Junior Subordinated Notes due 2027 were redeemed early on January 3, 2013.

4) 

$88 million of the 2006 Series B Enhanced Junior Subordinated Notes due 2066 were purchased and cancelled during the first and second quarters of 2012 primarily as a result of a tender offer.

5) 

In October 2012, Virginia Power redeemed the $25 million 6.5% IDA of Mecklenburg County, Virginia Exempt Facility Revenue Refunding Bonds, Series 2002, that would have otherwise matured in October 2017.

 

 

 

February 28, 2013   24

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule of Debt Maturities

As of December 31, 2012 (in $ millions)

 

     Due Date    DRI      VEPCO      Other      Total  

2013

              

7.83% Jr Subordinated NP to Affiliated Trusts (Early Redemption)

   01/03/13      257.7         —           —           257.7   

4.75% 2003 Series A Senior Notes

   03/01/13      —           400.0         —           400.0   

5.0% 2003 Series D Senior Notes

   03/15/13      250.0         —           —           250.0   

5.03% to 5.78% 2004 Sr Secured Notes (from Juniper Consolidation)

   08/15/13      —           —           841.6         841.6   

2012 Private Placement Short Term Notes (variable)

   11/21/13      400.0         —           —           400.0   

6.625% 1993 Series B Debentures (from CNG Merger)

   12/01/13      22.0         —           —           22.0   

7.25% Mecklenburg Senior Bonds

   multiple      —           11.6         —           11.6   

8.625% Panda-Rosemary Senior Notes

   multiple      —           5.9         —           5.9   

7.33% Senior Secured Bonds

   multiple      —           —           10.9         10.9   

7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes

   multiple      —           0.2         —           0.2   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2013

        929.7         417.7         852.5         2,199.9   

2014

              

5.0% 2003 Series A Senior Notes (from CNG Merger)

   03/01/14      200.0         —           —           200.0   

1.8% 2011 Series B Senior Notes

   03/15/14      400.0         —           —           400.0   

7.195% Remarketed 2000 Series E Senior Notes

   09/15/14      47.3         —           —           47.3   

5.0% 2004 Series A Senior Notes (from CNG Merger)

   12/01/14      400.0         —           —           400.0   

7.25% Mecklenburg Senior Bonds

   multiple      —           11.2         —           11.2   

8.625% Panda-Rosemary Senior Notes

   multiple      —           6.1         —           6.1   

7.33% Senior Secured Bonds

   multiple      —           —           14.9         14.9   

7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes

   multiple      —           0.3         —           0.3   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2014

        1,047.3         17.6         14.9         1,079.8   

2015

              

5.15% 2005 Series C Senior Notes

   07/15/15      500.0         —           —           500.0   

2.25% 2010 Series A Senior Notes

   09/01/15      250.0         —           —           250.0   

5.25% 2003 Series C Senior Notes

   12/15/15      —           200.0         —           200.0   

7.25% Mecklenburg Senior Bonds

   multiple      —           4.2         —           4.2   

8.625% Panda-Rosemary Senior Notes

   multiple      —           6.1         —           6.1   

7.33% Senior Secured Bonds

   multiple      —           —           17.7         17.7   

7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes

   multiple      —           0.3         —           0.3   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2015

        750.0         210.6         17.7         978.3   

2016

              

5.2% 2004 Series A Senior Notes

   01/15/16      193.9         —           —           193.9   

5.4% 2006 Series A Senior Notes

   01/15/16      —           450.0         —           450.0   

8.625% Panda-Rosemary Senior Notes

   02/15/16      —           1.5         —           1.5   

1986 Series IDA Prince William (variable)

   08/01/16      —           11.2         —           11.2   

1986 Series Grant County (variable)

   08/01/16      —           7.4         —           7.4   

1.95% 2011 Series D Senior Notes

   08/15/16      450.0         —           —           450.0   

5.6% 2006 Series A Senior Notes

   11/15/16      250.0         —           —           250.0   

7.25% Mecklenburg Senior Bonds

   multiple      —           6.0         —           6.0   

7.33% Senior Secured Bonds

   multiple      —           —           19.9         19.9   

7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes

   multiple      —           0.3         —           0.3   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2016

        893.9         476.4         19.9         1,390.2   

2017

              

2011 Series A EDA Chesterfield County (variable)

   06/01/17      —           75.0         —           75.0   

1.4% 2012 Series A Senior Notes

   09/15/17      350.0         —           —           350.0   

5.95% 2007 Series B Senior Notes

   09/15/07      —           600.0         —           600.0   

6.0% 2007 Series A Senior Notes

   11/30/17      350.0         —           —           350.0   

7.25% Mecklenburg Senior Bonds

   multiple      —           3.4         —           3.4   

7.33% Senior Secured Bonds

   multiple      —           —           21.5         21.5   

7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes

   multiple      —           0.3         —           0.3   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2017

        700.0         678.7         21.5         1,400.2   

Total 5-year Debt Maturities

      $ 4,320.9       $ 1,801.0       $ 926.5       $ 7,048.4   

 

 

 

February 28, 2013   25

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule of Liquidity Position

As of December 31, 2012 (in $ millions)

 

Total Committed Bank Lines

   $ 3,500   

Less:

  

Commercial Paper Outstanding

   $ 2,412   

Letters of Credit Issued

   $ 26   

Funded Loans

   $ —     
  

 

 

 

Total Available Capacity

   $ 1,062   

Cash & Short-Term Investments On Hand*

   $ 197   
  

 

 

 

Total Liquidity Available

   $ 1,259   
  

 

 

 

 

* Represents aggregate collected cash balances; not ledger balances per financial statements, which totaled $248 million at 12/31/2012.

Committed bank lines consist of the following:

A $3.0 billion revolving credit facility entered into by Dominion Resources, Inc. (“DRI”) and Virginia Electric and Power Company (“VEPCO”) in September 2010 which will mature in September 2017. This facility is available to DRI as well as VEPCO.

A $500 million revolving credit facility entered into by DRI and VEPCO in September 2010. $100 million of capacity under this facility will mature in September 2016 and the remaining $400 million will mature in September 2017. This facility is available to DRI as well as VEPCO.

Additionally, there is a $120 million revolving credit facility (not reflected in table above) entered into by VEPCO in September 2010, which will mature in September 2017. This facility is dedicated to certain tax-exempt bond issuances by VEPCO.

 

 

 

February 28, 2013   26

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Schedule of Change in Capitalization

Dominion Resources, Inc & Subsidiaries

Summary of Changes in Capitalization From December 31, 2011 to December 31, 2012

($ in Millions)

 

Change in Debt (Long-Term Debt plus Securities Due Within One Year)                   

Balance as of December 31, 2011

       $ 18,873   

Issuances:

      

VEPCO 2012 Series A 2.95% Senior Notes due 2022

       450     

DRI 2012 Series A 1.4% Senior Notes due 2017

       350     

DRI 2012 Series B 2.75% Senior Notes due 2022

       350     

DRI 2012 Series C 4.05% Senior Notes due 2042

       350     

DRI 2012 Private Placement (variable) Short Term Notes due 2013

       400     
    

 

 

   
       1,900     

Maturities:

      

VEPCO 2007 Series C 5.1% Senior Notes due 2012

       (600  

DRI 2002 Series C 5.7% Senior Notes due 2012

       (520  

DRI 2002 Series B 6.25% Senior Notes due 2012

       (334  

DRI 2006 Series B (variable) Enhanced Jr Subordinated Notes due 20661

       (88  

DRI 2004 Series C 2.125% Unsecured Convertible Senior Notes due 20232

       (61  

VEPCO 2002 Series 6.5% IDA Mecklenburg Bonds due 20173

       (25  

Other

       (29  
    

 

 

   
       (1,657  

Other:

      

Change in Fair Value Hedges and Net Discount/Premium

       (42  
    

 

 

   
       (42  

Balance as of December 31, 2012

       $ 19,074   

Change in Shareholders’ Equity

      

Balance as of December 31, 2011

       $ 11,503   

Issuance of Common Stock, Net

       313     

Change in Other Paid-in Capital

       (17  

Changes in AOCI:

      

Net Other Comprehensive Gain (Loss) associated with effective portion of changes in fair value of derivatives designated as cash flow hedges, net of taxes and amounts reclassified to earnings:

      

Interest Rate

     (49    

Electricity

     (78    

Gas

     5       

NGL

     54       
  

 

 

     
     (68    

Other changes in Net Other Comprehensive Income (4)

     (199    
  

 

 

     

Net change in AOCI

       (267  

Change in Retained Earnings

       (907  
    

 

 

   

Net change in Shareholders’ Equity

         (878

Noncontrolling Interest

         —     

Net change in Equity

         (878

Balance as of December 31, 2012

       $ 10,625   

 

1) $88 million of the 2006 Series B Enhanced Junior Subordinated Notes due 2066 were purchased and cancelled primarily as a result of a tender offer.
2) $61 million of the Convertible Senior Notes were converted into cash and common stock.
3) Redeemed early on October 15, 2012.
4) Primarily reflects a net increase in unrealized gains on investments held in nuclear decommissioning trusts, and changes related to pension and OPEB benefit plans.

 

 

 

February 28, 2013   27

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Hedging

 

Power, Capacity and NGL Hedge Positions           As of January 31, 2013  

Merchant Generation Power & Fuel

   Net Summer
Capacity  (MW)
     2013     2014     2015  

Hedge Positions 1

         

Millstone

     2,016         82     59     37

Manchester

     432         0     0     0

Fairless

     1,196         0     0     0
  

 

 

    

 

 

   

 

 

   

 

 

 

Total Merchant Generation 2

     3,644         45     32     21

Power Pricing

         

NEPOOL Baseload - Average Hedge Price ($/MWh) 3

      $ 48.83      $ 49.01      $ 54.29   

Merchant Generation Capacity (EFOR Adjusted)

          2013     2014     2015  

Millstone & Manchester (MW)

        2,473        2,467        2,469   

Average Capacity Hedge Price ($/KW - month)

      $ 2.61      $ 2.75      $ 3.05   

Fairless (MW) 4

        1,181        1,178        1,183   

Average Capacity Hedge Price ($/KW - month)

      $ 6.11      $ 5.52      $ 4.70   

NGL

          2013     2014        

Estimated annual NGL sales (in million gallons) 5

        140-150        120-130     

Amount hedged (in million gallons)

        127        116     

Average hedge price per gallon 6

      $ 1.34      $ 1.31     

 

1) 2013 hedge percentages are calculated based on the weighted-average of: 1) actual results which are considered to be 100% hedged, and 2) balance of year hedge percentages. Capacity shown is net summer capacity. Assume capacity remains constant in all periods shown.
2) Annual percentage calculations are capacity-weighted. Excludes Wind assets.
3) NEPOOL Baseload Average Hedge Price includes all on-peak, off-peak, around-the-clock, and seasonal hedges for Millstone Power Station.
4) For the June 1, 2012 to December 31, 2015 period, Fairless RPM auction clearing price is based on Eastern MAAC LDA.
5) Represents Dominion’s production interest from the Hastings plant. A small portion of anticipated volumes from Natrium are included in 2013 for the period before the plant is contributed to the Blue Racer Midstream JV.
6) Average hedge price is based on a basket of liquids products: propane (52%), normal butane (17%), iso-butane (10%) and natural gasoline (21%).

 

 

 

February 28, 2013   28

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of Forecast and Outlook

Reconciliation of Operating Earnings Guidance

4Q12 Operating Earnings Summary

(millions, except per share amounts)

 

     4Q111     Range of 4Q12     4Q12  

Description

   Actual*     Low     High     Actual*  

Operating Earnings before Interest and Taxes:

        

Dominion Virginia Power

   $ 232      $ 280      $ 305      $ 257   

Dominion Energy

     258        265        295        330   

Dominion Generation

     230        260        285        257   

Corporate and Other & Eliminations Adjusted EBIT

     (12     (15     (5     (21
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBIT

     708        790        880        823   

Consolidated Interest

     223        205        195        194   

Consolidated Income Taxes

     145        215        245        222   

Noncontrolling Interests

     6        5        5        7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Earnings

   $ 334      $ 365      $ 435      $ 400   

Average Diluted Shares Outstanding

     571.2        577        575        575.0   

Operating EPS Range

   $ 0.58      $ 0.64      $ 0.76      $ 0.69   

4Q12 Operating EPS Guidance Range*

     $ 0.65      $ 0.75     

Note: Figures may not add due to rounding

     4Q12 Operating EPS Actual >>>      $ 0.69   

 

1) Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.
* For information on items excluded from operating earnings see the GAAP Reconciliations on pages 36-39.

 

 

 

February 28, 2013   29

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

2012 Operating Earnings Summary

Dominion

2012 Operating Earnings Guidance Summary

(millions, except per share amounts)

 

     20111     Range of 2012     2012  

Description

   Actual*     Low     High     Actual*  

Operating Earnings before Interest and Taxes:

        

Dominion Virginia Power

   $ 1,012      $ 1,045      $ 1,095      $ 1,105   

Dominion Energy

     901        945        990        950   

Dominion Generation

     1,833        1,800        1,910        1,580   

Corporate and Other & Eliminations Adjusted EBIT

     (69     (75     (65     (73
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted EBIT

     3,677        3,715        3,930        3,562   

Consolidated Interest

     901        885        855        832   

Consolidated Income Taxes

     1,004        1,060        1,105        954   

Noncontrolling Interests

     18        25        25        27   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Earnings

   $ 1,754      $ 1,745      $ 1,945      $ 1,749   

Average Diluted Shares Outstanding

     574.6        575        573        573.9   

Operating EPS Range

   $ 3.05      $ 3.03      $ 3.39      $ 3.05   

2012 Operating EPS Guidance Range

     $ 3.10      $ 3.35     

Note: Figures may not add due to rounding

     2012 Operating EPS Actual >>>      $ 3.05   

 

1) Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.
* For information on items excluded from operating earnings see the GAAP Reconciliations on pages 36-39.

 

 

 

February 28, 2013   30

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

GAAP Reconciliation

Reconciliation of 2012 Consolidated Operating Earnings to Reported Earnings

Dominion Consolidated

Unaudited Income Statements

(millions, except per share amounts)

 

     Three Months Ended
December 31, 2012
    Twelve Months Ended
December 31, 2012
 
     Operating      Adjustments     GAAP     Operating      Adjustments     GAAP  

Operating Revenue

   $ 3,050       $ 117  (a), (f)    $ 3,167      $ 12,762       $ 331  (a), (f)    $ 13,093   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Operating Expenses

              

Electric fuel and other energy-related purchases

     823         32  (a), (f)      855        3,650         98  (a), (f)      3,748   

Purchased electric capacity

     90         —          90        387         —          387   

Purchased gas

     359         —          359        1,177         —          1,177   

Other operations and maintenance

     578         1,741  (a), (e), (f), (g)      2,319        2,446         2,422  (a), (e), (f), (g)      4,868   

Depreciation, depletion and amortization

     288         16  (a), (f)      304        1,148         38  (a), (f)      1,186   

Other taxes

     126         6  (a), (f)      132        551         20  (a), (f)      571   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     2,264         1,795        4,059        9,359         2,578        11,937   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income from operations

     786         (1,678     (892     3,403         (2,247     1,156   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Other income (loss)

     37         12  (a), (b), (f)      49        159         64  (a), (b), (f)      223   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     823         (1,666     (843     3,562         (2,183     1,379   

Interest and related charges

     194         21  (a), (f)      215        832         50  (a), (f)      882   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     629         (1,687     (1,058     2,730         (2,233     497   

Income taxes

     222         (628 ) (c)      (406     954         (808 ) (c)      146   

Income from continuing operations including noncontrolling interests

     407         (1,059     (652     1,776         (1,425     351   

Income (loss) from discontinued operations, net of tax

     —           —          —          —           (22 ) (d)      (22

Noncontrolling interests

     7         —          7        27         —          27   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Earnings

   $ 400       $ (1,059   $ (659   $ 1,749       $ (1,447   $ 302   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Earnings Per Share - Diluted

   $ 0.69       $ (1.84   $ (1.15   $ 3.05       $ (2.52   $ 0.53   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Average shares outstanding, diluted

     575.0           575.0        573.9           573.9   

Adjustments to Operating Earnings:

 

(a) Items related to Kewaunee nuclear merchant power station.
(b) Net gain/loss related to our investment in nuclear decommissioning trust funds.
(c) Income tax effects for items excluded from operating results.
(d) Items related to income/loss from State Line and Salem Harbor discontinued operations.
(e) Restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina Power service territories.
(f) Items related to certain fossil fuel-fired merchant power stations, which Dominion decided to market for sale in the third quarter of 2012.
(g) Other miscellaneous items.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   31

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 2011 Consolidated Operating Earnings to Reported Earnings

Dominion Consolidated

Unaudited Income Statements

(millions, except per share amounts)

 

     Three Months Ended
December 31, 2011
     Twelve Months Ended
December 31, 2011
 
     Operating1      Adjustments     GAAP2      Operating1      Adjustments     GAAP2  

Operating Revenue

   $ 3,216       $ (87 ) (a), (b), (k),  (l)    $ 3,129       $ 14,314       $ (169 ) (a), (b), (e),  (g), (k), (l)    $ 14,145   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating Expenses

               

Electric fuel and other energy-related purchases

     915         (13 ) (a), (b)      902         4,152         (55 ) (a), (b), (e)      4,097   

Purchased electric capacity

     110         —          110         454         —          454   

Purchased gas

     403         19  (l)      422         1,745         19  (l)      1,764   

Other operations and maintenance

     717         218  (a), (b), (h),  (l), (m)      935         2,849         473  (a), (b), (f),  (h), (i), (j), (l), (m)      3,322   

Depreciation, depletion and amortization

     282         1  (a)      283         1,068         (2 ) (a), (b), (f)     1,066   

Other taxes

     137         —          137         545         3  (a), (b)      548   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total operating expenses

     2,564         225        2,789         10,813         438        11,251   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income from operations

     652         (312     340         3,501         (607     2,894   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other income (loss)

     56         10  (a), (b), (c)      66         176         2  (a), (b), (c)      178   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     708         (302     406         3,677         (605     3,072   

Interest and related charges

     223         (47 ) (a), (b), (k)      176         901         (34 ) (a),(b), (k)      867   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     485         (255     230         2,776         (571     2,205   

Income taxes

     145         (121 ) (d)      24         1,004         (250 ) (d)      754   

Income from continuing operations including noncontrolling interests

     340         (134     206         1,772         (321     1,451   

Income (loss) from discontinued operations, net of tax

     —           1  (b)      1         —           (25 ) (b)      (25

Noncontrolling interests

     6         —          6         18         —          18   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings

   $ 334       $ (133   $ 201       $ 1,754       $ (346   $ 1,408   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings Per Share - Diluted

   $ 0.58       $ (0.23   $ 0.35       $ 3.05       $ (0.60   $ 2.45   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Average shares outstanding, diluted

     571.2           571.2         574.6           574.6   

Adjustments to Operating Earnings:

 

(a) Items related to Kewaunee nuclear merchant power station.
(b) Items related to Salem Harbor and State Line discontinued operations.
(c) Net gain/loss related our investment in nuclear decommissioning trust funds.
(d) Income tax effects for adjustments to operating results.
(e) Item related to Virginia deferred fuel.
(f) Benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at Millstone nuclear power station.
(g) PJM ancillary revenues adjustment related to prior year.
(h) Restoration costs associated with Hurricane Irene
(i) Earthquake related costs.
(j) Impairment charges related to excess emission allowances resulting from new EPA Air Pollution Rule.
(k) Items in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009-2010 test years.
(l) Other miscellaneous items.
(m) Impairment charge related to certain electric utility generation assets.

 

1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

2)

Amounts have been recast to reflect the results of State Line and Salem Harbor generating stations as discontinued operations.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   32

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 2012 Corporate and Other Operating Earnings to Reported Earnings

Corporate and Other

Unaudited Income Statements

(millions, except per share amounts)

 

     Three Months Ended
December 31, 2012
    Twelve Months Ended
December 31, 2012
 
     Operating     Adjustments     GAAP     Operating     Adjustments     GAAP  

Operating Revenue

   $ 148      $ 117  (a), (f)    $ 265      $ 584      $ 331  (a), (f)    $ 915   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

            

Electric fuel and other energy-related purchases

     —          32  (a), (f)      32        —          98  (a), (f)      98   

Purchased electric capacity

     —          —          —          —          —          —     

Purchased gas

     1        —          1        3        —          3   

Other operations and maintenance

     147        1,741  (a), (e), (f),  (g)      1,888        577        2,422  (a), (e), (f),  (g)      2,999   

Depreciation, depletion and amortization

     8        16  (a), (f)      24        30        38  (a), (f)      68   

Other taxes

     —          6  (a), (f)      6        21        20  (a), (f)      41   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     156        1,795        1,951        631        2,578        3,209   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     (8     (1,678     (1,686     (47     (2,247     (2,294
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (loss)

     13        12  (a), (b), (f)      25        80        64  (a), (b), (f)      144   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     5        (1,666     (1,661     33        (2,183     (2,150

Interest and related charges

     127        21  (a), (f)      148        496        50  (a), (f)      546   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     (122     (1,687     (1,809     (463     (2,233     (2,696

Income taxes

     (65     (628 ) (c)      (693     (228     (808 ) (c)      (1,036

Income from continuing operations including noncontrolling interests

     (57     (1,059     (1,116     (235     (1,425     (1,660

Income (loss) from discontinued operations, net of tax

     —          —          —          —          (22 ) (d)      (22

Noncontrolling interests

     —          —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (Loss) Contribution

   $ (57   $ (1,059   $ (1,116   $ (235   $ (1,447   $ (1,682
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share

   $ (0.10   $ (1.84   $ (1.94   $ (0.41   $ (2.52   $ (2.93
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average shares outstanding, diluted

     575.0          575.0        573.9          573.9   

Adjustments to Operating Earnings:

 

(a) Items related to Kewaunee nuclear merchant power station.
(b) Net gain/loss related to our investment in nuclear decommissioning trust funds.
(c) Income tax effects for items excluded from operating results.
(d) Items related to income/loss from State Line and Salem Harbor discontinued operations.
(e) Restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina Power service territories.
(f) Items related to certain fossil fuel-fired merchant power stations, which Dominion decided to market for sale in the third quarter of 2012.
(g) Other miscellaneous items.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   33

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 2011 Dominion Generation Earnings to Reported Earnings

Dominion Generation

Unaudited Summary of Operating results

(millions, except per share amounts)

 

     Three Months Ended
December 31, 2011
     Twelve Months Ended
December 31, 2011
 
     Operating1      Adjustments     GAAP2      Operating1      Adjustments     GAAP2  

Operating Revenue

   $ 1,634       $ (48 ) (a)    $ 1,586       $ 7,670       $ (235 ) (a)    $ 7,435   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating Expenses

               

Electric fuel and other energy-related purchases

     731         (22 ) (a)      709         3,210         (97 ) (a)      3,113   

Purchased electric capacity

     100         —          100         408         —          408   

Purchased gas

     —           —          —           —           —          —     

Other operations and maintenance

     420         (25 ) (a)      395         1,617         (77 ) (a)      1,540   

Depreciation, depletion and amortization

     122         —          122         459         (2 ) (a)      457   

Other taxes

     55         (1 ) (a)      54         204         (5 ) (a)      199   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total operating expenses

     1,428         (48     1,380         5,898         (181     5,717   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income from operations

     206         —          206         1,772         (54     1,718   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Other income

     24         (1 ) (a)      23         61         (1 ) (a)      60   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     230         (1     229         1,833         (55     1,778   

Interest and related charges

     56         (1 ) (a)      55         219         (2 ) (a)      217   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     174         —          174         1,614         (53     1,561   

Income taxes

     53         1  (a)      54         601         (18 ) (a)      583   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income including noncontrolling interests

     121         (1     120         1,013         (35     978   

Noncontrolling interests

     4         —          4         10         —          10   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating Earnings Contribution

   $ 117       $ (1   $ 116       $ 1,003       $ (35   $ 968   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating Earnings Per Share Contribution

   $ 0.20       $ —        $ 0.20       $ 1.74       $ (0.06   $ 1.68   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Average shares outstanding, diluted

     571.2           571.2         574.6           574.6   

Adjustments to Operating Earnings:

 

(a) Items related to Salem Harbor and State Line discontinued operations.

 

1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

2)

Amounts have been recast to reflect the results of State Line and Salem Harbor generating stations as discontinued operations.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   34

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 2011 Corporate and Other Operating Earnings to Reported Earnings

Corporate and Other

Unaudited Income Statements

(millions, except per share amounts)

 

     Three Months Ended
December 31, 2011
    Twelve Months Ended
December 31, 2011
 
     Operating     Adjustments     GAAP1     Operating     Adjustments     GAAP1  

Operating Revenue

   $ 149      $ (39 ) (a), (k), (m)    $ 110      $ 585      $ 66  (a), (e), (g),  (k), (m)    $ 651   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

            

Electric fuel and other energy-related purchases

     —          9  (a)      9        —          42  (a), (e)      42   

Purchased electric capacity

     —          —          —          —          —          —     

Purchased gas

     1        19  (m)      20        5        19  (m)      24   

Other operations and maintenance

     149        243  (a), (h), (l),  (m)      392        578        550  (a), (f), (h),  (i), (j), (m)      1,128   

Depreciation, depletion and amortization

     7        1  (a)      8        28        —    (a), (f)      28   

Other taxes

     1        1  (a)      2        22        8  (a)      30   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     158        273        431        633        619        1,252   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     (9     (312     (321     (48     (553     (601
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (loss)

     25        11  (a), (b)      36        85        3  (a), (b)      88   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before interest and income taxes

     16        (301     (285     37        (550     (513

Interest and related charges

     137        (46 ) (a), (k)      91        546        (32 ) (a), (k)      514   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income including noncontrolling interests before income taxes

     (121     (255     (376     (509     (518     (1,027

Income taxes

     (73     (122 ) (d)      (195     (238     (232 ) (c)      (470

Income from continuing operations including noncontrolling interests

     (48     (133     (181     (271     (286     (557

Income (loss) from discontinued operations, net of tax

     —          1  (d)      1        —          (25 ) (d)      (25

Noncontrolling interests

     —          —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (Loss) Contribution

   $ (48   $ (132   $ (180   $ (271   $ (311   $ (582
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Share

   $ (0.09   $ (0.23   $ (0.32   $ (0.47   $ (0.54   $ (1.01
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average shares outstanding, diluted

     571.2          571.2        574.6          574.6   

Adjustments to Operating Earnings:

 

(a) Items related to Kewaunee nuclear merchant power station.
(b) Net gain/loss related our investment in nuclear decommissioning trust funds.
(c) Income tax effects for adjustments to operating results.
(d) Items related to Salem Harbor and State Line discontinued operations.
(e) Item related to Virginia deferred fuel.
(f) Benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at Millstone nuclear power station.
(g) PJM ancillary revenues adjustment related to prior year.
(h) Restoration costs associated with Hurricane Irene
(i) Earthquake related costs.
(j) Impairment charges related to excess emission allowances resulting from new EPA Air Pollution Rule.
(k) Items in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009-2010 test years.
(l) Impairment charge related to certain electric utility generation assets.
(m) Other miscellaneous items.

 

1)

Amounts have been recast to reflect the results of State Line and Salem Harbor generating stations as discontinued operations.

Note: Figures may not add due to rounding

 

 

 

February 28, 2013   35

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 2012 Operating Earnings to Reported Earnings

Dominion

Reconciliation of 2012 Operating to 2012 GAAP

Unaudited, Operating Segments

(millions, except per share amounts)

 

Description

   2012
Operating
    Adjustments     2012
GAAP
 

Dominion Virginia Power EBIT

   $ 1,105        $ 1,105   

Dominion Energy EBIT

     950          950   

Dominion Generation EBIT

     1,580          1,580   

Corporate and Other & Eliminations EBIT

     (73     (2,183 ) (a), (b), (e), (f), (g)      (2,256
  

 

 

   

 

 

   

 

 

 

Total EBIT

   $ 3,562      ($ 2,183   $ 1,379   

Consolidated Interest

     832        50  (a), (f)     882   

Consolidated Income Taxes

     954        (808 ) (c)      146   

Noncontrolling Interests

     27          27   

Income(loss) from Discontinued Operations

     0        (22 ) (d)      (22
  

 

 

   

 

 

   

 

 

 

Earnings

   $ 1,749      ($ 1,447   $ 302   

Average Diluted Shares Outstanding

     573.9        573.9        573.9   
  

 

 

   

 

 

   

 

 

 

Operating EPS

   $ 3.05        —          —     
  

 

 

   

 

 

   

 

 

 

Adjustments

     —        ($ 2.52     —     
  

 

 

   

 

 

   

 

 

 

Reported EPS

     —          —        $ 0.53   
  

 

 

   

 

 

   

 

 

 

Note: Totals may not add due to rounding

      

Adjustments to Operating Earnings:

 

(a) Items related to Kewaunee nuclear merchant power station.
(b) Net gain/loss of our investment in nuclear decommissioning trust funds.
(c) Income tax effects for items excluded from operating results.
(d) Items related to State Line and Salem Harbor discontinued operations.
(e) Restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina Power service territories.
(f) Items related to certain fossil fuel-fired merchant power stations, which Dominion decided to market for sale in the third quarter of 2012.
(g) Other miscellaneous items.

 

 

 

February 28, 2013   36

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 2011 Operating Earnings to Reported Earnings

Reconciliation of 2011 Operating to 2011 GAAP

Unaudited, Operating Segments

(millions, except per share amounts)

 

Description

   2011
Operating1
    Adjustments     2011
GAAP2
 

Dominion Virginia Power EBIT

   $ 1,012        $ 1,012   

Dominion Energy EBIT

     901          901   

Dominion Generation EBIT

     1,833        (55 ) (a)     1,778   

Corporate and Other & Eliminations EBIT

     (69     (550 ) (b), (c), (e), (f), (f), (g), (h), (i), (j), (k)      (619
  

 

 

   

 

 

   

 

 

 

Total EBIT

   $ 3,677      ($ 605   $ 3,072   

Consolidated Interest

     901        (34 ) (a),(b), (h)      867   

Consolidated Income Taxes

     1,004        (250 ) (d)      754   

Noncontrolling Interests

     18          18   

Income(loss) from Discontinued Operations

     0        (25 ) (a)      (25
  

 

 

   

 

 

   

 

 

 

Earnings

   $ 1,754      ($ 346   $ 1,408   
     574.6        574.6        574.6   
  

 

 

   

 

 

   

 

 

 

Operating EPS

   $ 3.05        —          —     
  

 

 

   

 

 

   

 

 

 

Adjustments

     —        ($ 0.60     —     
  

 

 

   

 

 

   

 

 

 

Reported EPS

     —          —        $ 2.45   
  

 

 

   

 

 

   

 

 

 

Note: Totals may not add due to rounding

  

Adjustments to Operating Earnings:

 

(a) Items related to State Line and Salem Harbor discontinued operations.
(b) Items related to Kewaunee nuclear merchant power station.
(c) Net gain/loss related to our investment in nuclear decommissioning trust funds.
(d) Income tax effects for adjustments to operating results.
(e) Impairment charges related to certain electric utility generation assets.
(f) Restoration costs associated with Hurricane Irene.
(g) Impairment charges related to excess emission allowances resulting from new EPA Air Pollution Rule.
(h) Items in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009-2010 test years.
(i) Earthquake related costs.
(j) Benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at Millstone nuclear power station.
(k) Other miscellaneous items.

 

1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

2)

Amounts have been recast to reflect the results of State Line and Salem Harbor generating stations as discontinued operations.

 

 

 

February 28, 2013   37

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 1Q12 and 4Q12 Operating Earnings to Reported Earnings

Reconciliation of 4Q12 Operating to 4Q12 GAAP

Unaudited, Operating Segments

(millions, except per share amounts)

 

Description

   4Q12
Operating
    Adjustments     4Q12
GAAP
 

Dominion Virginia Power EBIT

   $ 257        $ 257   

Dominion Energy EBIT

     330          330   

Dominion Generation EBIT

     257          257   

Corporate and Other & Eliminations EBIT

     (21     (1,666 ) (a), (b), (d), (e), (f)      (1,687
  

 

 

   

 

 

   

 

 

 

Total EBIT

   $ 823      ($ 1,666   ($ 843

Consolidated Interest

     194        21  (a), (f)      215   

Consolidated Income Taxes

     222        (628 ) (c)      (406

Noncontrolling Interests

     7          7   

Income(loss) from Discontinued Operations

     0        0        0   
  

 

 

   

 

 

   

 

 

 

Earnings

   $ 400      ($ 1,059   ($ 659

Average Diluted Shares Outstanding

     575.0        575.0        575.0   
  

 

 

   

 

 

   

 

 

 

Operating EPS

   $ 0.69        —          —     
  

 

 

   

 

 

   

 

 

 

Adjustments

     —        ($ 1.84     —     
  

 

 

   

 

 

   

 

 

 

Reported EPS

     —          —        ($ 1.15
  

 

 

   

 

 

   

 

 

 

Reconciliation of 1Q12 Operating to 1Q12 GAAP1

Unaudited, Operating Segments

(millions, except per share amounts)

 

Description

   1Q12
Operating
    Adjustments     1Q12
GAAP
 

Dominion Virginia Power EBIT

   $ 324        $ 324   

Dominion Energy EBIT

     256          256   

Dominion Generation EBIT

     394          394   

Corporate and Other & Eliminations EBIT

     (3     16  (a), (b)                              13   
  

 

 

   

 

 

   

 

 

 

Total EBIT

   $ 971      $ 16      $ 987   

Consolidated Interest

     223        5  (a)      228   

Consolidated Income Taxes

     255        4  (c)      259   

Noncontrolling Interests

     7          7   

Income(loss) from Discontinued Operations

     0        1  (g)      1   
  

 

 

   

 

 

   

 

 

 

Earnings

   $ 486      $ 8      $ 494   

Average Diluted Shares Outstanding

     571.9        571.9        571.9   
  

 

 

   

 

 

   

 

 

 

Operating EPS

   $ 0.85        —          —     
  

 

 

   

 

 

   

 

 

 

Adjustments

     —        $ 0.01        —     
  

 

 

   

 

 

   

 

 

 

Reported EPS

     —          —        $ 0.86   
  

 

 

   

 

 

   

 

 

 

Note: Totals may not add due to rounding

Adjustments to Operating Earnings:

 

(a) Items related to Kewaunee nuclear merchant power station.
(b) Net gain/loss of our investment in nuclear decommissioning trust funds.
(c) Income tax effects for items excluded from operating results.
(d) Restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina Power service territories.
(e) Items related to certain fossil fuel-fired merchant power stations, which Dominion decided to market for sale in the third quarter of 2012.
(f) Other miscellaneous items.
(g) Items related to State Line and Salem Harbor discontinued operations.

 

 

 

February 28, 2013   38

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

Reconciliation of 4Q11 Operating Earnings to Reported Earnings

Reconciliation of 4Q11 Operating to 4Q11 GAAP

Unaudited, Operating Segments

(millions, except per share amounts)

 

Description

   4Q11
Operating1
    Adjustments     4Q11
GAAP2
 

Dominion Virginia Power EBIT

   $ 232        $ 232   

Dominion Energy EBIT

     258          258   

Dominion Generation EBIT

     230        (1 ) (a)      229   

Corporate and Other & Eliminations EBIT

     (12     (301 ) (b), (c), (e), (f), (g), (h)      (313
  

 

 

   

 

 

   

 

 

 

Total EBIT

   $ 708      ($ 302   $ 406   

Consolidated Interest

     223        (47 ) (a), (b), (f)      176   

Consolidated Income Taxes

     145        (121 ) (d)      24   

Noncontrolling Interests

     6          6   

Income(loss) from Discontinued Operations

     0        1  (a)      1   
  

 

 

   

 

 

   

 

 

 

Earnings

   $ 334      ($ 133   $ 201   
     571.2        571.2        571.2   
  

 

 

   

 

 

   

 

 

 

Operating EPS

   $ 0.58        —          —     
  

 

 

   

 

 

   

 

 

 

Adjustments

     —        ($ 0.23     —     
  

 

 

   

 

 

   

 

 

 

Reported EPS

     —          —        $ 0.35   
  

 

 

   

 

 

   

 

 

 

Note: Totals may not add due to rounding

Adjustments to Operating Earnings:

 

(a) Items related to State Line and Salem Harbor discontinued operations.
(b) Items related to Kewaunee nuclear merchant power station.
(c) Net gain/loss related to our investment in nuclear decommissioning trust funds.
(d) Income tax effects for adjustments to operating results.
(e) Adjustment to exclude an impairment charge related to certain electric utility generation assets.
(f) Adjustment to exclude items in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009-2010 test years.
(g) Adjustment to exclude impact of restoration costs associated with Hurricane Irene.
(h) Adjustment to exclude other miscellaneous items.
1)

Reflects amounts as originally reported prior to recast of results for State Line and Salem Harbor generating stations as discontinued operations.

2)

Amounts have been recast to reflect the results of State Line and Salem Harbor generating stations as discontinued operations.

 

 

 

February 28, 2013   39

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

2013 Earnings Expectations

Earnings Per Share (diluted)

Reconciliation of measures prepared in accordance with Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures

 

1Q 2013 Operating Earnings (estimate):

   $ 0.80 - $0.95   

FY 2013 Operating Earnings (estimate):

   $ 3.20 - $3.50   

1Q 2013 Reported Earnings (estimate):

     See Note 1 below   

FY 2013 Reported Earnings (estimate):

     See Note 1 below   

 

1. In providing its first-quarter and full-year 2013 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, divestitures or changes in accounting principles. At this time, Dominion management is not able to estimate the aggregate impact, if any, of these items on reported earnings. Accordingly, Dominion is not able to provide a corresponding GAAP equivalent for its operating earnings guidance.

Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion 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 management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.

Dominion’s estimates of first-quarter and full-year 2013 earnings are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations may include factors that are beyond the company’s ability to control or estimate precisely, including fluctuations in energy-related commodity prices, estimates of future market conditions, additional competition in the electric industry, changes in the demand for Dominion’s services, access to and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, asset portfolio reviews and resulting decisions to acquire, divest or retire assets, the receipt of regulatory approvals for, and timing of, planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects within the terms and timeframes initially anticipated. Other factors include, but are not limited to, weather conditions and other events, including the effects of hurricanes, earthquakes, high winds, major storms and changes in water temperatures on operations, the risk associated with the operation of nuclear facilities, unplanned outages of Dominion’s generation facilities, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, political and economic conditions, industrial, commercial and residential growth or decline in Dominion’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, fluctuations in interest rates, changes in federal and state tax laws, employee workforce factors, including collective bargaining, counter-party credit and performance risks, adverse outcomes in litigation matters or regulatory proceedings, the risk of hostile cyber intrusions and other uncertainties. Other risk factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.

 

 

 

February 28, 2013   40

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.


DOMINION – REVISED 4Q12 EARNINGS RELEASE KIT

 

APPENDIX

List of Revised Schedules

 

Schedule    Page
Number
 

Schedule 1 - Segment Operating Earnings

     8   

Schedule 2 - Reconciliation of 2012 Operating Earnings to Reported Earnings

     9   

Schedule 4 - Reconciliation of 2012 Earnings to 2011

     11   

Consolidated Financial Statements (GAAP) - Dominion Consolidated

  

Preliminary & Unaudited Income Statements (GAAP Based)

     12   

Preliminary & Unaudited Balance Sheets (Summarized)

     13   

Preliminary & Unaudited Statements of Cash Flows (Summarized)

     14   

Segment Operating Earnings Results

  

Dominion Consolidated - Unaudited Summary of Operating Results

     15   

Corporate and Other - Unaudited Summary of Operating Results

     19   

Schedule of Changes in Capitalization - Dominion Resources, Inc. & Subsidiaries

     28   

Reconciliation of Operating to Reported Earnings

  

Reconciliation of 2012 Consolidated Operating Earnings to Reported Earnings

     32   

Reconciliation of 2012 Corporate and Other Operating Earnings to Reported Earnings

     34   

Reconciliation of 2012 Operating Earnings to Reported Earnings

     37   

Reconciliation of 4Q12 Operating Earnings to Reported Earnings

     39   

 

 

 

February 28, 2013   41

Please refer to page 3 for risks and uncertainties related to projections and forward-looking statements.