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Form 8-K DOMINION ENERGY, INC For: Aug 08

August 8, 2022 7:31 AM EDT
false 0000715957 0000715957 2022-08-08 2022-08-08

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 8, 2022

 

Dominion Energy, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 Virginia

001-08489

54-1229715

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

120 Tredegar Street

Richmond, Virginia

 

23219

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (804) 819-2000

 

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, no par value

 

D

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


 

 

Item 2.02

Results of Operations and Financial Condition

 

On August 8, 2022, Dominion Energy, Inc. issued a press release announcing preliminary unaudited earnings for the three months ended June 30, 2022.  The press release and related preliminary earnings tables are furnished with this Form 8-K as Exhibit 99.

 

 

 

Item 9.01

Financial Statements and Exhibits

 

Exhibits

 

99

Dominion Energy, Inc. press release dated August 8, 2022

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

DOMINION ENERGY, INC.

 

 

 

Registrant

 

 

 

 

 

 

By:

/s/ Carter M. Reid

 

 

 

Carter M. Reid

 

 

 

Executive Vice President,
Chief of Staff and Corporate Secretary and

President – Dominion Energy Services

 

 

 

Date:  August 8, 2022

 

 

 

Exhibit 99

                 

   August 8, 2022

 

Dominion Energy Announces Second-Quarter 2022 Earnings

 

Second-quarter 2022 GAAP reported net loss of $0.58 per share

 

 

Second-quarter 2022 operating earnings of $0.77 per share

 

 

Company initiates third-quarter 2022 operating earnings guidance of $0.98 to $1.13 per share

 

 

Company affirms full-year 2022 operating earnings guidance as well as other long-term earnings and dividend guidance

 

 

RICHMOND, Va. – Dominion Energy (NYSE: D) today announced an unaudited net loss determined in accordance with Generally Accepted Accounting Principles (reported earnings) for the three months ended June 30, 2022, of $453 million ($0.58 per share) compared with net income of $285 million ($0.33 per share) for the same period in 2021.  

 

Operating earnings for the three months ended June 30, 2022, were $658 million ($0.77 per share), compared to operating earnings of $628 million ($0.76 per share) for the same period in 2021.

 

The difference between GAAP and operating earnings for the three months ended June 30, 2022, reflect the mark-to-market impact of economic hedging activities, gains and losses on nuclear decommissioning trust funds, charges associated with the sale of Kewaunee nuclear power station, regulated asset retirements and other adjustments.

 

Operating earnings are defined as reported earnings adjusted for certain items.  Details of operating earnings as compared to prior periods, business segment results and detailed descriptions of items included in reported earnings but excluded from operating earnings can be found on Schedules 1, 2, 3 and 4 of this release.  

 

Guidance

Dominion Energy expects third-quarter operating earnings in the range of $0.98 to $1.13 per share.

 

The company affirms its full-year 2022 operating earnings guidance range of $3.95 to $4.25 per share.  The company also affirms its long-term earnings and dividend growth guidance.

 

Webcast today

The company will host its second-quarter 2022 earnings call at 10 a.m. ET on Monday, Aug. 8, 2022.  Management will discuss matters of interest to financial and other stakeholders including recent financial results.    

 

A live webcast of the conference call, including accompanying slides and other financial information, will be available on the investor information pages at investors.dominionenergy.com.

 

For individuals who prefer to join via telephone, domestic callers should dial 1-800-420-1271 and international callers should dial 1-785-424-1205.  The passcode for the telephonic earnings call is 98021.  Participants should dial in 10 to 15 minutes prior to the scheduled start time.  

 

A replay of the webcast will be available on the investor information pages by the end of the day Aug. 8.  A telephonic replay of the earnings call will be available beginning at about 1 p.m. ET on Aug. 8.  Domestic callers may access the recording by dialing 1-800-839-9307.  International callers should dial 1-402-220-6085.  The PIN for the replay is 98021.

 

Important note to investors regarding operating, reported earnings

Dominion Energy uses operating earnings as the primary performance measurement of its earnings guidance and results


for public communications with analysts and investors.  Dominion Energy also uses operating earnings internally for budgeting, for reporting to the Board of Directors, for the company’s incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion Energy management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.

 

In providing its operating earnings guidance, the company notes that there could be differences between expected reported earnings and estimated operating earnings for matters such as, but not limited to, acquisitions, divestitures or extreme weather events and other natural disasters.  Dominion Energy management is not able to estimate the aggregate impact of these items on future period reported earnings.

 

About Dominion Energy

About 7 million customers in 15 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to safely providing reliable, affordable and sustainable energy and to achieving Net Zero emissions by 2050. Please visit DominionEnergy.com to learn more.

 

This release contains certain forward-looking statements, including forecasted operating earnings third-quarter and full-year 2022 and beyond that are subject to various risks and uncertainties. Factors that could cause actual results to differ include, but are not limited to: unusual weather conditions and their effect on energy sales to customers and energy commodity prices; extreme weather events and other natural disasters; extraordinary external events, such as the current pandemic health event resulting from COVID-19; federal, state and local legislative and regulatory developments; changes to regulated rates collected by Dominion Energy; timing and receipt of regulatory approvals necessary for planned construction or expansion projects and compliance with conditions associated with such regulatory approvals; the inability to complete planned construction projects within time frames initially anticipated; risks and uncertainties that may impact the ability to develop and construct the Coastal Virginia Offshore Wind (CVOW) Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers; changes to federal, state and local environmental laws and regulations, including those related to climate change; cost of environmental strategy and compliance, including cost related to climate change; changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities; changes in operating, maintenance and construction costs; additional competition in Dominion Energy’s industries; changes in demand for Dominion Energy’s services; receipt of approvals for, and timing of, closing dates for acquisitions and divestitures; impacts of acquisitions, divestitures, transfers of assets by Dominion Energy to joint ventures, and retirements of assets based on asset portfolio reviews; the expected timing and likelihood of the completion of the proposed sale of Hope, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such regulatory approvals; adverse outcomes in litigation matters or regulatory proceedings; fluctuations in interest rates; fluctuations in currency exchange rates of the Euro or Danish Krone associated with the CVOW Commercial Project; changes in rating agency requirements or credit ratings and their effect on availability and cost of capital; and capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms.  Other risk factors are detailed from time to time in Dominion Energy’s quarterly reports on Form 10-Q and most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

 

#####

 

For further information:  Media: Ryan Frazier, (804) 836-2083 or [email protected]; Investor Relations: David McFarland, (804) 819-2438 or [email protected]


Dominion Energy, Inc.

 

 

 

Consolidated Statements of Income*

 

 

 

Unaudited (GAAP Based)

 

 

 

(millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2022

2021

 

2021

2020

 

 

 

 

 

 

Operating Revenue

$3,596

$3,038

 

$7,875

$6,908

Operating Expenses

 

 

 

 

 

Electric fuel and other energy-related purchases

730

487

 

1,408

1,037

Purchased electric capacity

16

25

 

29

36

Purchased gas

202

121

 

847

605

Other operations and maintenance1

2,036

1,216

 

3,052

2,298

Depreciation, depletion and amortization

695

604

 

1,393

1,212

Other taxes

235

222

 

488

479

  Total operating expenses

3,914

2,675

 

7,217

5,667

 

 

 

 

 

 

Income (loss) from operations

(318)

363

 

658

1,241

 

 

 

 

 

 

Other income (expense)2

(204)

377

 

(78)

744

Interest and related charges

47

518

 

221

571

 

 

 

 

 

 

Income (loss) from continuing operations including noncontrolling interests before income tax expense (benefit)

(569)

222

 

359

1,414

Income tax expense (benefit)

(117)

(47)

 

119

165

 

 

 

 

 

 

Net Income (loss) from continuing operations including noncontrolling interests

(452)

269

 

240

1,249

 

 

 

 

 

 

Net Income (loss) from discontinued operations including noncontrolling interests

(1)

26

 

18

54

 

 

 

 

 

 

Net Income (loss) including noncontrolling interests

$(453)

$295

 

$258

$1,303

Noncontrolling interests

-

10

 

-

10

Net Income (Loss) attributable to Dominion Energy

$(453)

$285

 

$258

$1,293

 

 

 

 

 

 

Reported Income (loss) per common share from continuing operations - diluted

$(0.58)

$0.30

 

$0.23

$1.49

Reported Income (loss) per common share from discontinued operations - diluted

-

0.03

 

0.02

0.07

Reported Income (Loss) per common share - diluted

$(0.58)

$0.33

 

$0.25

$1.56

Average shares outstanding, diluted

818.4

806.6

 

815.9

806.3

 

 

 

 

 

 


1) Includes impairment of assets and other charges and losses on sales of assets.

 

 

 

 

2) Includes earnings from equity method investees.

 

 

 

 

* The notes contained in Dominion Energy's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

 

 

 

 

 

 



 

Schedule 1 - Segment Reported and Operating Earnings

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

(millions, except per share amounts)

Three months ended June 30,

 

 

 

 

2022

 

2021

 

Change

REPORTED EARNINGS1

$(453)

 

$285

 

$(738)

Pre-tax loss (income)2

1,383

 

474

 

909

Income tax2

(272)

 

(131)

 

(141)

Adjustments to reported earnings

1,111

 

343

 

768

 

 

 

 

 

 

 

 

 

OPERATING EARNINGS

$658

 

$628

 

$30

By segment:

 

 

 

 

 

Dominion Energy Virginia

440

 

431

 

9

Gas Distribution

125

 

95

 

30

Dominion Energy South Carolina

124

 

84

 

40

Contracted Assets

20

 

104

 

(84)

Corporate and Other

(51)

 

(86)

 

35

 

 

 

 

$658

 

$628

 

$30

 

 

 

 

 

 

 

 

 

Earnings Per Share (EPS):3

 

 

 

 

 

REPORTED EARNINGS 1

$(0.58)

 

$0.33

 

$(0.91)

Adjustments to reported earnings (after tax)

1.35

 

0.43

 

0.92

OPERATING EARNINGS

$0.77

 

$0.76

 

$0.01

By segment:

 

 

 

 

 

Dominion Energy Virginia

0.54

 

0.53

 

0.01

Gas Distribution

0.15

 

0.12

 

0.03

Dominion Energy South Carolina

0.15

 

0.10

 

0.05

Contracted Assets

0.02

 

0.13

 

(0.11)

Corporate and Other

(0.09)

 

(0.12)

 

0.03

 

 

 

 

$0.77

 

$0.76

 

$0.01

Common Shares Outstanding (average, diluted)

832.5

 

806.6

 

 

 

 

 

 

 

 

 

 

 

(millions, except per share amounts)

Six months ended June 30,

 

 

 

 

2022

 

2021

 

Change

REPORTED EARNINGS1

$258

 

$1,293

 

$(1,035)

Pre-tax loss (income)2

1,638

 

322

 

1,316

Income tax2

(238)

 

(94)

 

(144)

Adjustments to reported earnings

1,400

 

228

 

1,172

 

 

 

 

 

 

 

 

 

OPERATING EARNINGS

$1,658

 

$1,521

 

$137

By segment:

 

 

 

 

 

Dominion Energy Virginia

958

 

865

 

93

Gas Distribution

419

 

346

 

73

Dominion Energy South Carolina

233

 

186

 

47

Contracted Assets

121

 

254

 

(133)

Corporate and Other

(73)

 

(130)

 

57


 

 

 

 

$1,658

 

$1,521

 

$137

 

 

 

 

 

 

 

 

 

Earnings Per Share (EPS):3

 

 

 

 

 

REPORTED EARNINGS 1

$0.25

 

$1.56

 

$(1.31)

Adjustments to reported earnings (after tax)

1.69

 

0.28

 

1.41

OPERATING EARNINGS

$1.94

 

$1.84

 

$0.10

By segment:

 

 

 

 

 

Dominion Energy Virginia

1.18

 

1.07

 

0.11

Gas Distribution

0.51

 

0.43

 

0.08

Dominion Energy South Carolina

0.29

 

0.23

 

0.06

Contracted Assets

0.15

 

0.31

 

(0.16)

Corporate and Other

(0.19)

 

(0.20)

 

0.01

 

 

 

 

$1.94

 

$1.84

 

$0.10

Common Shares Outstanding (average, diluted)

832.3

 

806.3

 

 

 

 

 

 

 

 

 

 

 

1) Determined in accordance with Generally Accepted Accounting Principles (GAAP).

 

2) Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings.  Refer to Schedules 2 and 3 for details, or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion Energy's website at investors.dominionenergy.com.

 

3) The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. As a result of a reported net loss for the three months ended June 30, 2022, any adjustments to earnings or shares would be considered antidilutive and are excluded from the calculation of diluted earnings per share. Effective January 2022, the calculation of diluted reported and operating earnings per share assumes conversion, if dilutive, of the Series A preferred stock to common stock as of January 1, 2022. The Series A preferred stock was reclassified to a liability in June 2022. In prior periods, a fair value adjustment of the Series A preferred stock was included in the calculation of diluted reported earnings per share if dilutive. No adjustments were necessary for the three and six months ended June 30, 2021. During each quarter of 2022, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with preferred stock of $9 million (Series B) and $11 million (Series C, issued in December 2021). Reported earnings per share for the three and six months ended June 30, 2022 also includes the impact of preferred dividends associated with Series A preferred stock of $5 million and $12 million, respectively.  During each quarter of 2021, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with preferred stock of $7 million (Series A) and $9 million (Series B). See Forms 10-Q and 10-K for additional information.



 

Schedule 2 - Reconciliation of 2022 Reported Earnings to Operating Earnings

 

 

 

 

 

 

 

 

 

2022 Earnings (Six months ended June 30, 2022)

 

 

 

 

 

 

 

 

 

The $1.6 billion pre-tax net loss of the adjustments included in 2022 reported earnings, but excluded from operating earnings, is primarily related to the following items:

 

 

 

 

 

 

 

 

 

$382 million net market loss associated with nuclear decommissioning trusts and economic hedging activities.

 

$649 million loss associated with the sale of Kewaunee nuclear power station.

 

$535 million of regulated asset retirements and other charges, including $371 million of charges for certain Virginia Power fuel and Regional Greenhouse Gas Initiative (RGGI) compliance costs deemed recovered through base rates and $122 million associated with the settlement of Virginia Power’s 2021 triennial review.

 

$94 million of storm damage and restoration costs associated with storms in Virginia Power’s service territory.

 

 

 

 

 

 

 

 

(millions, except per share amounts)

1Q22

2Q22

3Q22

4Q22

YTD 2022

3

Reported earnings

$711

($453)

$0

$0

$258

 

Adjustments to reported earnings1:

 

 

 

 

 

 

    Pre-tax loss (income)

255

1,383

0

0

1,638

 

    Income tax

34

(272)

0

0

(238)

 

 

289

1,111

0

0

1,400

 

Operating earnings

$1,000

$658

$0

$0

$1,658

 

Common shares outstanding (average, diluted)

832.0

832.5

0.0

0.0

832.3

 

Reported earnings per share2

$0.83

($0.58)

$0.00

$0.00

$0.25

 

Adjustments to reported earnings per share2

0.35

1.35

0.00

0.00

1.69

 

Operating earnings per share2

$1.18

$0.77

$0.00

$0.00

$1.94

 

 

 

 

 

 

 

 

1) Adjustments to reported earnings are reflected in the following table:

 

 

1Q22

2Q22

3Q22

4Q22

YTD 2022

 

Pre-tax loss (income):

 

 

 

 

 

 

Net loss on Nuclear Decommissioning Trust (NDT) funds

$125

$454

$0

$0

$579

 

Mark-to-market impact of economic hedging activities

(4)

(193)

0

0

(197)

 

Discontinued operations - Gas Transmission & Storage segment

(25)

3

0

0

(22)

 

Sale of Kewaunee

0

649

0

0

649

 

Regulated asset retirements and other charges

65

470

0

0

535

 

Storm damage and restoration costs

94

0

0

0

94

 

 

$255

$1,383

$0

$0

$1,638

 

Income tax expense (benefit):

 

 

 

 

 

 

Tax effect of above adjustments to reported earnings *

(53)

(275)

0

0

(328)

 

Deferred taxes associated with Hope Gas, Inc. divestiture 4

87

3

0

0

90

 

 

$34

($272)

$0

$0

($238)

 

 

 

 

 

 

 

 

 


* Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, calculation of such amounts may be adjusted in connection with the calculation of the Company’s year-to-date income tax provision based on its estimated annual effective tax rate.

 

2) The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. As a result of a reported net loss for the three months ended June 30, 2022, any adjustments to earnings or shares would be considered antidilutive and are excluded from the calculation of diluted earnings per share.  Effective January 2022, the calculation of diluted reported and operating earnings per share assumes conversion, if dilutive, of the Series A preferred stock to common stock as of January 1, 2022. The Series A preferred stock was reclassified to a liability in June 2022. During each quarter of 2022, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with preferred stock of $9 million (Series B) and $11 million (Series C, issued in December 2021).  Reported earnings per share for the three and six months ended June 30, 2022 also includes the impact of preferred dividends associated with Series A preferred stock of $5 million and $12 million, respectively.  See Forms 10-Q and 10-K for additional information.

 

3) YTD EPS may not equal sum of quarters due to share count difference.

 

4) Represents deferred taxes related to the basis in Hope Gas, Inc.'s stock that will reverse upon completion of the sale.

 

 



 

Schedule 3 - Reconciliation of 2021 Reported Earnings to Operating Earnings

 

 

 

 

 

 

 

 

 

2021 Earnings (Twelve months ended December 31, 2021)

 

 

 

 

 

 

 

 

 

The $26 million pre-tax net gain of the adjustments included in 2021 reported earnings, but excluded from operating earnings, is primarily related to the following items:

 

 

 

 

 

 

 

 

 

$308 million net market benefit associated with $568 million from the nuclear decommissioning trusts offset by $260 million in economic hedging activities.

 

$829 million of net income from discontinued operations, including $685 million associated with the sale of Questar Pipelines.

 

$564 million of regulated asset retirements and other charges, including $266 million associated with the settlement of the South Carolina electric rate case, primarily for the write-off of regulatory assets for debt repurchased in 2019, $186 million associated with the settlement of Virginia Power’s 2021 triennial review and $77 million for forgiveness of Virginia customer accounts in arrears pursuant to Virginia’s 2021 budget process.

 

$235 million of net charges associated with the sales of non-wholly-owned nonregulated solar facilities.

 

$99 million of net merger and integration-related costs associated with the SCANA Combination, primarily for litigation charges.

 

$77 million of net charges associated with workplace realignment, primarily related to a corporate office lease termination.

 

$68 million of storm damage and restoration costs associated with ice storms in Virginia Power’s service territory.

 

 

 

 

 

 

 

 

 

(millions, except per share amounts)

1Q21

2Q21

3Q21

4Q21

YTD 2021

3

Reported earnings

$1,008

$285

$654

$1,341

$3,288

 

Adjustments to reported earnings 1:

 

 

 

 

 

 

Pre-tax loss (income)

(152)

474

413

(761)

(26)

 

Income tax

37

(131)

(149)

172

(71)

 

 

 

(115)

343

264

(589)

(97)

 

Operating earnings

$893

$628

$918

$752

$3,191

 

Common shares outstanding (average, diluted)

805.9

806.6

810.0

811.0

808.5

 

Reported earnings per share 2

$1.23

$0.33

$0.79

$1.63

$3.98

 

Adjustments to reported earnings per share 2

(0.14)

0.43

0.32

(0.73)

(0.12)

 

Operating earnings per share 2

$1.09

$0.76

$1.11

$0.90

$3.86

 

 

 

 

 

 

 

 

 

1) Adjustments to reported earnings are reflected in the following table:

 

 

 

1Q21

2Q21

3Q21

4Q21

YTD 2021

 

Pre-tax loss (income):

 

 

 

 

 

 

Net (gain) loss on NDT funds

$(134)

$(194)

$19

$(259)

$(568)

 

Mark-to-market impact of economic hedging activities

(278)

291

284

(37)

260

 

Discontinued operations - Gas Transmission & Storage segment

(35)

(30)

(59)

(705)

(829)

 

Regulated asset retirements and other charges

100

278

119

67

564

 

Sales of non-wholly-owned nonregulated solar facilities

-

-

23

212

235

 


Merger litigation and integration charges

71

48

8

(28)

99

 

Workplace realignment

71

-

17

(11)

77

 

Storm damage and restoration costs

51

17

-

-

68

 

Kewaunee decommissioning revision

-

44

-

-

44

 

Other

2

20

2

-

24

 

 

 

$(152)

$474

$413

$(761)

$(26)

 

Income tax expense (benefit):

 

 

 

 

 

 

Tax effect of above adjustments to reported earnings *

37

(131)

(140)

204

(30)

 

Other

-

-

(9)

(32)

(41)

 

 

 

$37

$(131)

$(149)

$172

$(71)

 

 

 

 

 

 

 

 

 

* Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, such amounts may be adjusted in connection with the calculation of the Company’s year-to-date income tax provision based on its estimated annual effective tax rate.

 

 

 

2) The calculation of operating earnings per share excludes the impact, if any, of fair value adjustments related to the Company's convertible preferred securities entered in June 2019. Such fair value adjustments, if any, are required for the calculation of diluted reported earnings per share. No adjustments were necessary for the three months ended March 31, June 30 or September 30 or for the three and twelve months ended December 31. During each quarter of 2021, the calculation of reported and operating earnings per share includes the impact of preferred dividends of $7 million associated with the Series A preferred stock equity units and $9 million associated with the Series B preferred stock equity units. In addition, the fourth quarter of 2021 includes $3 million of preferred dividends associated with the Series C preferred stock issued in December 2021. See Forms 10-Q and 10-K for additional information.

 

 

 

3) YTD EPS may not equal sum of quarters due to share count difference and fair value adjustment associated with the convertible preferred securities.

 

 



 

Schedule 4 - Reconciliation of 2Q22 Earnings to 2Q21

 

 

 

 

 

 

 

 

 

 

Preliminary, Unaudited

Three Months Ended

 

Six Months Ended

(millions, except EPS)

June 30,

 

June 30,

 

 

2022 vs. 2021

 

2022 vs. 2021

 

 

Increase / (Decrease)

 

Increase / (Decrease)

Reconciling Items

Amount

EPS

 

Amount

EPS

 

 

 

 

 

 

 

Change in reported earnings (GAAP)

($738)

($0.91)

 

($1,035)

($1.31)

 

 

 

 

 

 

 

Change in Pre-tax loss (income) 1

909

 

 

1,316

 

Change in Income tax 1

(141)

 

 

(144)

 

Adjustments to reported earnings

$768

$0.92

 

$1,172

$1.41

 

 

 

 

 

 

 

Change in consolidated operating earnings

$30

$0.01

 

$137

$0.10

 

 

 

 

 

 

 

Dominion Energy Virginia

 

 

 

 

 

Regulated electric sales:

 

 

 

 

 

Weather

($7)

($0.01)

 

$7

$0.01

Other

77

0.10

 

68

0.08

Rider equity return

12

0.01

 

28

0.03

Electric capacity

(4)

-

 

(12)

(0.01)

Storm damage and restoration costs

(8)

(0.01)

 

(8)

(0.01)

Depreciation & amortization

9

0.01

 

16

0.02

Renewable energy investment tax credits

(38)

(0.05)

 

23

0.03

Interest expense, net

(8)

(0.01)

 

(11)

(0.01)

Other

(24)

(0.02)

 

(18)

(0.02)

Share dilution

 

(0.01)

 

 

(0.01)

Change in contribution to operating earnings

$9

$0.01

 

$93

$0.11

 

 

 

 

 

 

 

Gas Distribution

 

 

 

 

 

Regulated gas sales:

 

 

 

 

 

Weather

-

-

 

$2

-

Other

20

0.02

 

54

0.07

Rider equity return

5

0.01

 

13

0.02

Interest expense, net

(3)

-

 

(2)

-

Other

8

-

 

6

-

Share dilution

 

-

 

 

(0.01)

Change in contribution to operating earnings

$30

$0.03

 

$73

$0.08

 

 

 

 

 

 

 

Dominion Energy South Carolina

 

 

 

 

 

Regulated electric sales:

 

 

 

 

 

Weather

$12

$0.01

 

$13

$0.02

Other

23

0.03

 

38

0.05

Regulated gas sales

1

-

 

4

-

Interest expense, net

(3)

-

 

(3)

-


Other

7

0.01

 

(5)

(0.01)

Share dilution

 

-

 

 

-

Change in contribution to operating earnings

$40

$0.05

 

$47

$0.06

 

 

 

 

 

 

 

Contracted Assets

 

 

 

 

 

Margin

($24)

($0.03)

 

($27)

($0.03)

Sale of non-wholly-owned nonregulated solar facilities

(10)

(0.01)

 

(9)

(0.01)

Planned outage costs

(45)

(0.06)

 

(49)

(0.06)

Renewable energy investment tax credits

-

-

 

(29)

(0.04)

Interest expense, net

(13)

(0.02)

 

(25)

(0.03)

Other

8

0.01

 

6

0.01

Share dilution

 

-

 

 

-

Change in contribution to operating earnings

($84)

($0.11)

 

($133)

($0.16)

 

 

 

 

 

 

 

Corporate and Other

 

 

 

 

 

Interest expense, net

$24

$0.03

 

$56

$0.07

Other

11

0.01

 

1

-

Share dilution

-

(0.01)

 

-

(0.06)

Change in contribution to operating earnings

$35

$0.03

 

$57

$0.01

 

 

 

 

 

 

 

Change in consolidated operating earnings

$30

$0.01

 

$137

$0.10

 

 

 

 

 

 

 

Change in adjustments included in reported earnings1

($768)

($0.92)

 

($1,172)

($1.41)

 

 

 

 

 

 

 

Change in consolidated reported earnings

($738)

($0.91)

 

($1,035)

($1.31)

 

 

 

 

 

 

 

1) Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings. Refer to Schedules 2 and 3 for details, or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion Energy's website at investors.dominionenergy.com.

 

 

 

 

 

 

 

Note: Figures may not sum due to rounding

 

 

 

 



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