Earnings Per Share

9 Months Ended

Sep. 30, 2021

Note 6. Earnings Per Share

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations	$	589		$	369		$	1,828		$	767
Preferred stock dividends (see Note 16)		(16	)		(16	)		(48	)		(48	)
Net income attributable to Dominion Energy from continuing operations – Basic		573			353			1,780			719
Dilutive effect of Series A Preferred Stock		—			—			—			(28	)
Net income attributable to Dominion Energy from continuing operations - Diluted	$	573		$	353		$	1,780		$	691
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted	$	65		$	(13	)	$	119		$	(1,850	)

Average shares of common stock outstanding – Basic		808.7			833.8			807.1			837.1
Net effect of dilutive securities ⁽¹⁾		1.3			—			0.5			—
Average shares of common stock outstanding – Diluted		810.0			833.8			807.6			837.1

EPS from continuing operations – Basic	$	0.71		$	0.42		$	2.20		$	0.86
EPS from discontinued operations – Basic		0.08			(0.01	)		0.15			(2.21	)
EPS attributable to Dominion Energy – Basic	$	0.79		$	0.41		$	2.35		$	(1.35	)

EPS from continuing operations – Diluted	$	0.71		$	0.42		$	2.20		$	0.83
EPS from discontinued operations – Diluted		0.08			(0.01	)		0.15			(2.21	)
EPS attributable to Dominion Energy – Diluted	$	0.79		$	0.41		$	2.35		$	(1.38	)

(1)	Primarily related to shares expected to be issued to settle litigation.

The 2019 Equity Units and the Q-Pipe Transaction deposit, prior to being settled in cash in July 2021, are potentially dilutive securities. See Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020 and Note 3, respectively, for additional information. Additionally, the two September 2020 accelerated share purchase agreements were potentially dilutive for the three and nine months ended September 30, 2020. See Note 16 for additional information.

The forward stock purchase contracts included within the 2019 Equity Units are excluded from the calculation of diluted EPS from continuing operations for the three and nine months ended September 30, 2021 and 2020, as the dilutive stock price threshold was not met. The Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations based upon the expectation that the conversion will be settled in cash rather than through the issuance of Dominion Energy common stock. As described in Note 16, effective November 2021 any settlement of the conversion up to $1,000 per share is payable in cash, and any amount in excess of $1,000 per share may be settled in cash, common stock or a combination thereof. For the three and nine months ended September 30, 2021 and the three months ended September 30, 2020, a fair value adjustment related to the Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations, as such fair value adjustment was not dilutive during the periods.

The impact of settling the deposit associated with the Q-Pipe Transaction in shares is excluded from the calculation of diluted EPS from continuing operations for the three and nine months ended September 30, 2021 based upon the expectation Dominion Energy would settle in cash, which occurred in July 2021, rather than through the issuance of Dominion Energy common stock.

The forward stock purchase contracts included within the September 2020 accelerated share repurchase agreements are excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2020 as the dilutive stock price threshold was not met.