DOMINION ENERGY, INC Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Dominion Energy, Inc. (D) reported solid financial performance for the nine months ended September 30, 2015, with net income attributable to Dominion increasing by 45% to $1.54 billion, or $2.60 per diluted share, compared to the same period in 2014. This growth was primarily driven by the absence of significant charges related to prior-year legislation for nuclear and offshore wind projects, as well as gains from conveying shale development rights and improved performance across its utility, generation, and energy segments. The company's robust operating cash flows, which increased significantly year-over-year, underscore its ability to generate consistent cash to fund operations and investments. Dominion also highlighted its strategic progress, including the acquisition of DCG to expand its natural gas operations in the Southeast and continued investments in solar development projects. The company's balance sheet remains solid, with a significant increase in equity reflecting strong retained earnings and common stock issuances. Despite a slight increase in long-term debt, Dominion's liquidity position is supported by substantial unused capacity under its credit facilities, indicating continued financial flexibility for future growth and operational needs.

Key Highlights

• 1Net income attributable to Dominion increased significantly by 45% to $1.54 billion for the nine months ended September 30, 2015, compared to $1.07 billion in the prior year.
• 2Diluted Earnings Per Share (EPS) rose to $2.60 for the nine months ended September 30, 2015, up from $1.83 in the same period of 2014.
• 3Operating revenue for the nine months ended September 30, 2015, decreased slightly to $9.13 billion from $9.49 billion in 2014, largely due to lower natural gas prices and decreased sales in non-regulated segments.
• 4Net cash provided by operating activities increased substantially to $3.45 billion for the nine months ended September 30, 2015, up from $2.41 billion in the prior year, indicating strong operational cash generation.
• 5The company completed the acquisition of DCG for approximately $497 million, expanding its natural gas pipeline network in the Southeast.
• 6Dominion continued to invest in renewable energy, acquiring several wholly-owned merchant solar projects and entering agreements to sell noncontrolling interests in these projects to SunEdison.
• 7Total long-term debt increased to $23.25 billion from $21.81 billion, reflecting financing activities for capital expenditures and acquisitions, while total equity increased to $13.28 billion from $11.96 billion.

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