DOMINION ENERGY, INC Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Dominion Energy, Inc. reported a net income attributable to Dominion of $594 million for the third quarter of 2009, a 17% increase compared to $508 million in the same period last year. Diluted Earnings Per Share (EPS) rose to $1.00 from $0.87 year-over-year. However, for the nine months ended September 30, 2009, net income decreased by 13% to $1.30 billion ($2.19 diluted EPS) compared to $1.49 billion ($2.56 diluted EPS) in the prior year. The company continues to navigate a challenging economic environment, with revenue impacted by decreased energy sales and lower commodity prices. Key factors influencing the results include higher contributions from gas transmission operations due to expansion projects, a positive impact from merchant nuclear decommissioning trust funds, and the absence of certain one-time charges or benefits seen in the prior year. The company is also progressing with the planned sale of its regulated gas distribution subsidiaries in Pennsylvania and West Virginia, awaiting regulatory approvals.

Key Highlights

• 1Third quarter net income increased 17% year-over-year to $594 million, with diluted EPS rising to $1.00.
• 2Nine-month net income decreased 13% year-over-year to $1.30 billion ($2.19 diluted EPS) primarily due to an impairment charge related to E&P properties and the absence of prior year tax benefits.
• 3Operating revenue for the quarter decreased by 16% ($717 million) due to lower producer services, electric utility, and merchant generation revenues.
• 4Operating expenses decreased by $717 million in the third quarter, largely driven by lower electric fuel and purchased gas expenses.
• 5The company has $3.8 billion in unused capacity under its credit facilities as of September 30, 2009, indicating solid liquidity.
• 6Dominion Generation remained the largest contributor to net income, accounting for $459 million in Q3 2009.

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