01—Abstract
Summary
Summary of the 10-K filed February 28, 2011. Cited figures are marked; the original filing is the authoritative source.
Dominion Energy, Inc.'s (D) 2010 10-K filing reveals a company focused on strengthening its regulated utility operations.
The company reported significant income growth, driven by the sale of its Appalachian E&P operations and a substantial gain realized from this divestiture. This strategic move is part of Dominion's broader strategy to increase its earnings contribution from regulated operations, thereby reducing sensitivity to commodity price fluctuations. Dominion continues to prioritize investments in its regulated electric and natural gas infrastructure, with plans to invest over $10 billiona in the next five years.
These investments are aimed at meeting anticipated increases in electricity demand, supporting new natural gas production, and upgrading existing networks. The company is also considering up to an additional $2 billionb investment in its electric generating fleet to address potential new environmental requirements, highlighting a commitment to adapting to evolving regulatory landscapes and maintaining operational resilience. The filing also details Dominion's robust liquidity position and access to capital markets, essential for funding its extensive capital expenditure program.
02—Key points
Key Highlights
- Significant income growth reported in 2010, largely due to a $1.4 billion after-tax gain from the sale of Appalachian E&P operations.
- Plans to invest over $10 billion in the next five years to expand and improve regulated electric and natural gas businesses, focusing on infrastructure upgrades and meeting growing energy demand.
- Strategic focus on increasing earnings from regulated operations to reduce sensitivity to commodity price volatility.
- Dominion Generation segment continues to be a major contributor to earnings, with ongoing development of new generation capacity, including the Bear Garden and Virginia City Hybrid Energy Center projects.
- Dominion Energy segment benefits from natural gas transmission and storage operations, including the Cove Point expansion project.
- Robust liquidity and access to capital markets, with $2 billion in unused capacity under credit facilities at year-end 2010.
- Commitment to environmental stewardship is evident through ongoing investments in compliance and conservation programs, with plans to address potential new environmental requirements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2010filed February 28, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $14.93B$14.80B | +0.9% |
| Operating Expenses | $11.54B$12.23B | −5.6% |
| Operating Income | $5.85B$2.57B | +127.8% |
| Net Income | $2.81B$1.29B | +118.2% |
| EPS (Basic) | $4.77$2.17 | +119.8% |
| EPS (Diluted) | $4.76$2.17 | +119.4% |
| Shares Outstanding (Basic) | 588.90M593.30M | −0.7% |
| Shares Outstanding (Diluted) | 590.10M593.70M | −0.6% |
05—Questions
Frequently Asked Questions
What was Dominion Energy's primary financial driver in 2010?
The primary financial driver in 2010 was the sale of substantially all of Dominion's Appalachian E&P operations, which resulted in a significant after-tax gain of approximately $1.4 billion. This divestiture contributed substantially to the company's reported income growth for the year.
How is Dominion Energy planning to invest in its future growth?
Dominion Energy plans to invest over $10 billion in the next five years, primarily focusing on expanding and improving its regulated electric and natural gas businesses. These investments will target infrastructure upgrades to meet increased demand, support new natural gas production, and enhance the reliability of its distribution and transmission networks.
What is Dominion Energy's strategy regarding its regulated versus non-regulated businesses?
Dominion Energy's strategy is to focus on expanding investments in its regulated electric generation, transmission, and distribution, as well as regulated natural gas transmission and distribution infrastructure. This strategy aims to increase earnings contribution from regulated operations, thereby reducing the company's sensitivity to commodity price fluctuations.
What were the major operational segments of Dominion Energy in 2010?
Dominion Energy managed its operations through three primary segments: DVP (Dominion Virginia Power), Dominion Generation (including both regulated utility and merchant generation assets), and Dominion Energy (natural gas transmission, storage, and distribution). A Corporate and Other segment also captured corporate functions and the net impact of divested operations.
06—Continue