Summary
Dominion Energy, Inc. (D) reported its second quarter and year-to-date results for 2010, marked by significant strategic divestitures and improved operational performance. The company completed the sale of substantially all of its Appalachian E&P operations in April 2010, generating a substantial after-tax gain of approximately $1.4 billion and after-tax proceeds of $2.2 billion. This divestiture significantly impacts the company's operational profile, shifting its focus away from exploration and production. Financially, net income attributable to Dominion saw a substantial increase compared to the prior year, largely driven by the gain on the E&P sale. Revenue experienced a slight decrease, influenced by lower margins in merchant generation and the divestiture of E&P operations, but this was partially offset by growth in electric utility operations. The company also highlighted progress in various regulatory matters and continued investments in transmission projects.
Financial Highlights
47 data points| Revenue | $3.33B |
| Operating Expenses | $2.69B |
| Operating Income | $3.11B |
| Net Income | $1.76B |
| EPS (Basic) | $2.98 |
| EPS (Diluted) | $2.98 |
| Shares Outstanding (Basic) | 590.40M |
| Shares Outstanding (Diluted) | 591.40M |
Key Highlights
- 1Significant financial impact from the sale of Appalachian E&P operations, resulting in a substantial gain and substantial proceeds.
- 2Net income attributable to Dominion increased significantly, driven by the E&P sale gain.
- 3Operating revenue saw a slight decrease year-over-year, primarily due to lower merchant generation margins and the E&P divestiture, partially offset by growth in electric utility operations.
- 4Progress made on key regulatory filings and approvals, including fuel expenses, generation riders, and transmission projects.
- 5Strategic focus shifting away from E&P operations towards core utility and generation businesses.
- 6Company is managing market risk through commodity derivative instruments and interest rate hedges.