10-KPeriod: FY2017

DOMINION ENERGY, INC Annual Report, Year Ended Dec 31, 2017

Filed February 27, 2018For Securities:D

Summary

Dominion Energy, Inc. (D) filed its 2017 10-K report on February 26, 2018, detailing its financial performance and operational highlights. The company, a significant energy producer and transporter, primarily operates within regulated electric generation, transmission, distribution, and natural gas infrastructure segments, with approximately 90% of its earnings expected to come from these regulated and long-term contracted businesses. Dominion Energy's strategy centers on expanding investments in these core areas, driven by demand growth, environmental requirements, and infrastructure upgrades. The company's business is broadly categorized into three main operating segments: Power Delivery, Power Generation, and Gas Infrastructure. In 2017, Dominion Energy reported strong growth in net income attributable to the company, largely due to benefits from the 2017 Tax Reform Act and the inclusion of Dominion Energy Questar operations for the full year. The company highlighted its commitment to cleaner generation, including expanding its renewable energy portfolio and pursuing extensions for its nuclear units, while also undertaking significant capital expenditures to modernize its infrastructure.

Financial Highlights

51 data points
Beta

Revenue

$12.59B

Net Income

$3.00B

23.8% Net Margin

EPS (Diluted)

$4.72

Total Assets

$76.58B

Cash & Equivalents

$120.00M

Free Cash Flow

-$1.00B

Financial Statements
Beta
Revenue$12.59B
Operating Expenses$8.65B
Operating Income$3.94B
Net Income$3.00B
EPS (Basic)$4.72
EPS (Diluted)$4.72
Shares Outstanding (Basic)636.00M
Shares Outstanding (Diluted)636.00M

Key Highlights

  • 1Dominion Energy is strategically focused on regulated and long-term contracted businesses, aiming for approximately 90% of its earnings from these stable sources.
  • 2The company reported a significant increase in net income in 2017, benefiting from tax reform measures and the full-year inclusion of Dominion Energy Questar's results.
  • 3Capital expenditures are substantial, with plans to invest approximately $8.5 billion in Power Delivery and $8.3 billion in Gas Infrastructure over the 2018-2022 period to support growth and modernization.
  • 4The company is expanding its renewable energy portfolio, particularly solar generation, and is committed to meeting state renewable energy targets.
  • 5Dominion Energy is actively managing its debt structure, with total long-term debt remaining substantial but with access to significant credit facilities and a stated intention to replace existing facilities with a larger one in 2018.
  • 6The proposed acquisition of SCANA Corporation was announced in January 2018, representing a major strategic move that is expected to close by the end of 2018, subject to regulatory and shareholder approvals.
  • 7The company's environmental strategy includes reducing GHG emissions through renewable energy expansion, nuclear operations, energy infrastructure modernization, and conservation programs.

Frequently Asked Questions

Dominion Energy's financial performance in 2017 was significantly boosted by benefits arising from the remeasurement of deferred income taxes due to the 2017 Tax Reform Act, which lowered corporate income tax rates. Additionally, the full-year inclusion of results from the Dominion Energy Questar combination, completed in September 2016, contributed positively. Favorable factors also included increased generation output from merchant solar projects and growth in regulated natural gas transmission projects, partially offset by lower renewable energy investment tax credits and charges related to equity method investments in wind facilities.

Dominion Energy's core strategy is to focus on its regulated electric and gas businesses and long-term contracted assets, expecting these to generate about 90% of its earnings. Key capital investment plans include upgrading and expanding electric transmission and distribution infrastructure (approximately $8.5 billion from 2018-2022) to meet demand and ensure reliability, modernizing its gas infrastructure ($8.3 billion over the same period), and investing in new generation capacity, including utility-scale solar projects in Virginia and North Carolina.

Dominion Energy announced an agreement to acquire SCANA Corporation in January 2018. The transaction is subject to SCANA shareholder approval, and various regulatory approvals, including from FERC, the NRC, and state commissions in South Carolina, North Carolina, and Georgia. Dominion Energy targets closing the transaction by the end of 2018, and it is expected to include significant customer credits and refunds provided by SCE&G, SCANA's subsidiary, as part of the deal.

Dominion Energy has a comprehensive environmental strategy focused on reducing GHG emissions, modernizing energy infrastructure, and promoting conservation and energy efficiency. This includes expanding its renewable generation portfolio (solar, wind, biomass), pursuing operating license extensions for its nuclear units to ensure carbon-free generation, and converting or retiring coal-fired generation units to cleaner fuels. The company is actively working to improve its environmental performance and reduce its carbon footprint while meeting customer energy needs.