What was Dominion's net income and earnings per share for the third quarter of 2002?

For the third quarter of 2002, Dominion reported a net income of $430 million, or $1.54 per diluted share. This represents an increase compared to the $344 million net income, or $1.37 per diluted share, reported for the same period in 2001.

How did the acquisition of Louis Dreyfus Natural Gas Corp. impact Dominion's results?

The acquisition of Louis Dreyfus Natural Gas Corp. positively impacted the Dominion Exploration & Production segment, contributing to higher overall production levels for gas and oil. This acquisition was a key driver of increased operating revenue and expenses within that segment.

What is the status of Dominion's environmental matters, specifically the EPA's Notice of Violation?

Dominion has reached an agreement in principle with the federal government and the state of New York to resolve allegations regarding New Source Review permits under the Clean Air Act at the Mt. Storm Power Station. The agreement includes a $5 million civil penalty, a $14 million commitment for environmental projects, and a 12-year, $1.2 billion capital investment program for environmental improvements. Negotiations for a binding settlement are ongoing, and Dominion has recorded $18 million for the civil penalty and environmental projects as of September 30, 2002.

What are the key risks and uncertainties facing Dominion, as highlighted in the report?

Dominion faces several risks, including sensitivity to weather conditions, complex government regulation, rising environmental compliance costs, competition in the electric generation business, risks associated with nuclear facilities, potential losses from derivative contracts, market risks in energy trading, and the success of its telecommunications and exploration/production strategies being dependent on volatile commodity prices and market conditions. Access to financial markets and potential changes in credit ratings are also critical factors.

D 10-Q Quarterly Report Q3 FY2002 — Revenue, Net Income, EPS

Summary

Dominion Resources, Inc. reported a net income of $430 million for the third quarter of 2002, an increase of $86 million compared to the same period in the prior year. Diluted earnings per share were $1.54, up from $1.37 in Q3 2001. For the nine months ended September 30, 2002, net income was $1.024 billion, a significant increase from $661 million in the same period of 2001, with diluted EPS rising to $3.71 from $2.65. The company experienced growth in its regulated electric sales and benefited from the acquisition of Louis Dreyfus Natural Gas Corp. in its Exploration & Production segment. However, results were partially offset by lower revenues from the merchant generation fleet and a decrease in energy trading and wholesale electric marketing operations due to unfavorable price changes on energy contracts. The company also saw a decrease in interest and related charges due to lower overall interest rates. Dominion announced several strategic initiatives and acquisitions during the period, including the acquisition of Cove Point LNG Limited Partnership and State Line Ventures, Inc. The company also refinanced its credit facilities and issued new long-term debt and common stock. Management highlighted its focus on financial position and credit ratings in response to evolving market conditions.

Key Highlights

1Net income for the third quarter of 2002 increased by $86 million to $430 million, with diluted EPS rising to $1.54 from $1.37 in the prior year.
2Nine-month net income significantly increased by $363 million to $1.024 billion, with diluted EPS up to $3.71 from $2.65 in 2001.
3Acquisition of Louis Dreyfus Natural Gas Corp. boosted the Exploration & Production segment's performance.
4Regulated electric sales saw an increase due to warmer weather and customer growth.
5Dominion acquired Cove Point LNG Limited Partnership and Mirant State Line Ventures, Inc. during the period.
6The company refinanced its credit facilities, issuing new long-term debt and common stock, and announced plans for further debt repayment.
7Despite overall positive results, lower prices impacted merchant generation fleet revenues and energy trading operations.

DOMINION ENERGY, INC Quarterly Report for Q3 Ended Sep 30, 2002

Summary

Key Highlights

Frequently Asked Questions