What was the primary driver for the significant increase in net income for the first quarter of 2002?

The significant increase in net income was primarily driven by a favorable $136 million after-tax charge related to the acquisition of three non-utility generating plants in the first quarter of 2001, coupled with the impact of adopting SFAS No. 142 which eliminated goodwill amortization, contributing an additional $22 million.

How did weather conditions affect Dominion's performance in the first quarter of 2002?

Milder weather during the first quarter of 2002 negatively impacted Dominion's regulated electric and gas distribution operations, leading to reduced sales revenues and lower volumes, thus slightly decreasing the operational results of these segments.

What is Dominion's strategy regarding its debt and equity financing?

Dominion continues to access capital markets by issuing long-term debt and common stock to fund capital expenditures and repay existing debt. During the first quarter of 2002, the company issued $689 million in common stock and $1.8 billion in long-term debt, while also benefiting from lower interest rates on its outstanding debt.

How is Dominion managing market risks, particularly commodity price volatility?

Dominion utilizes derivative financial instruments, such as futures, forwards, options, and swaps, to manage price risks associated with natural gas, electricity, and oil. However, the company notes that a hypothetical 10% adverse change in commodity prices could result in a decrease of approximately $282 million in the fair value of its non-trading derivative commodity instruments.

D 10-Q Quarterly Report Q1 FY2002 — Revenue, Net Income, EPS

Summary

Dominion Energy, Inc. (D) reported solid financial results for the first quarter of 2002, with net income increasing significantly to $322 million, or $1.20 per diluted share, compared to $162 million, or $0.65 per diluted share, in the same period of 2001. This substantial growth was driven by several factors, including a favorable $136 million after-tax charge related to the acquisition of three non-utility generating plants in the prior year's quarter and the positive impact of the adoption of SFAS No. 142, which eliminated goodwill amortization and added $22 million to net income in the current quarter. Despite the strong overall performance, operational results from Dominion's core segments saw a slight decline, primarily due to milder weather impacting electricity and natural gas demand. The company also benefited from reduced interest expenses due to lower overall interest rates on debt. Dominion continued to execute its financing strategy, issuing long-term debt and common stock to manage capital needs and repay existing debt, while maintaining stable credit ratings. The company is also actively managing market risks through derivative contracts, though a hypothetical 10% adverse change in commodity prices could have a notable impact on fair value.

Key Highlights

1Net income surged by 99% to $322 million in Q1 2002 compared to $162 million in Q1 2001.
2Diluted Earnings Per Share (EPS) more than doubled to $1.20 from $0.65 year-over-year.
3The adoption of SFAS No. 142, eliminating goodwill amortization, increased net income by $22 million in Q1 2002.
4Operating revenue decreased to $2,634 million from $3,198 million in the prior year's quarter, primarily due to lower gas prices and volumes.
5Interest and related charges decreased by $12 million to $242 million, reflecting lower interest rates.
6Dominion issued $689 million in common stock and $1.8 billion in long-term debt during the quarter.
7The company faces continued regulatory scrutiny and market competition, particularly in its electric generation business.

DOMINION ENERGY, INC Quarterly Report for Q1 Ended Mar 31, 2002

Summary

Key Highlights

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