10-QPeriod: Q1 FY2017

DOMINION ENERGY, INC Quarterly Report for Q1 Ended Mar 31, 2017

Filed May 4, 2017For Securities:D

Summary

Dominion Energy, Inc. (D) reported solid financial performance for the first quarter of 2017 compared to the same period in 2016. Net income attributable to Dominion increased by 21% to $632 million, driven by the successful integration of the Dominion Questar acquisition, positive impacts from the PJM capacity performance market, and favorable customer usage patterns. Diluted Earnings Per Share (EPS) also saw a significant rise of 15% to $1.01. Operationally, the company benefited from increased electric utility operations and regulated natural gas transmission and distribution activities. While some expenses rose, particularly due to the Questar acquisition and increased salaries, the overall revenue growth outpaced these increases. Dominion maintains a strong liquidity position with significant unused capacity under its credit facilities, supporting its ongoing capital expenditure plans and dividend payments. Investors should note the ongoing regulatory and environmental matters, which are being actively managed by the company.

Financial Highlights

48 data points
Beta

Revenue

$3.38B

Net Income

$632.00M

18.7% Net Margin

EPS (Diluted)

$1.01

Total Assets

$72.85B

Cash & Equivalents

$486.00M

Free Cash Flow

-$75.00M

Financial Statements
Beta
Revenue$3.38B
Operating Expenses$2.31B
Operating Income$1.08B
Net Income$632.00M
EPS (Basic)$1.01
EPS (Diluted)$1.01
Shares Outstanding (Basic)628.10M
Shares Outstanding (Diluted)628.10M

Key Highlights

  • 1Net income attributable to Dominion increased by 21% year-over-year to $632 million.
  • 2Diluted EPS rose 15% to $1.01, reflecting strong operational performance.
  • 3The Dominion Questar Combination significantly contributed to revenue growth and benefited results.
  • 4Virginia Power reported a 35% increase in net income, driven by PJM capacity market benefits and customer usage.
  • 5Dominion Gas Holdings saw a 10% increase in net income, aided by growth in gas transportation and storage.
  • 6Strong operating cash flows increased by $168 million, supporting capital expenditures and dividends.
  • 7The company maintained ample liquidity with $2.8 billion in unused credit facility capacity.

Frequently Asked Questions

The primary drivers for the 21% increase in net income were the successful integration of the Dominion Questar Combination, positive contributions from the PJM capacity performance market, and an increase in sales to utility customers due to favorable usage patterns. The absence of costs related to the organizational design initiative also contributed positively.

The acquisition of Dominion Questar was a major contributor to Dominion's Q1 2017 results. It led to significant increases in net revenue, particularly in regulated natural gas transmission and distribution operations, and also increased operating expenses and depreciation, depletion, and amortization.

Dominion maintains strong liquidity, with $2.8 billion in unused capacity under its credit facilities as of March 31, 2017. This robust financial position allows the company to fund its working capital requirements, support capital expenditures, and maintain its dividend policy.

Yes, Dominion, Virginia Power, and Dominion Gas are involved in various ongoing regulatory and legal matters, including environmental compliance, climate change regulations, and other legal proceedings. While the company actively manages these situations, some could potentially have a material impact on future results of operations, financial condition, or cash flows. Specific details are provided in Notes 12 and 15 of the filing.