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10-QPeriod: Q3 FY2017

DOMINION ENERGY, INC Quarterly Report for Q3 Ended Sep 30, 2017

Filed November 1, 2017For Securities:D

Summary

Dominion Energy, Inc. (D) reported solid financial results for the nine months ended September 30, 2017. The company saw a modest increase in net income attributable to Dominion Energy, growing by 1% to $1.687 billion compared to the same period in 2016. This growth was driven by the inclusion of operations from the Dominion Energy Questar acquisition, a capacity benefit in the PJM market, and the absence of prior-year organizational restructuring costs. Diluted Earnings Per Share (EPS) saw a slight decrease to $2.66 from $2.71, primarily impacted by lower anticipated renewable energy investment tax credits and milder weather conditions affecting electricity sales. Operationally, Dominion Energy experienced growth in its Gas Infrastructure segment, benefiting from regulated natural gas transmission projects. The Power Generation segment, however, faced headwinds from lower renewable energy investment tax credits and less favorable pricing at merchant generation facilities. The company continues to invest in infrastructure, with significant capital expenditures noted in property, plant, and equipment additions. Management remains focused on operational efficiency and strategic growth initiatives, as indicated by ongoing investments and the successful financing activities during the period.

Financial Statements
Beta
Revenue$3.18B
Operating Expenses$2.03B
Operating Income$1.15B
Net Income$665.00M
EPS (Basic)$1.03
EPS (Diluted)$1.03
Shares Outstanding (Basic)642.50M
Shares Outstanding (Diluted)642.50M

Key Highlights

  • 1Net income attributable to Dominion Energy increased 1% to $1.687 billion for the nine months ended September 30, 2017, compared to $1.666 billion in the prior year.
  • 2Diluted EPS for the nine months ended September 30, 2017, was $2.66, a slight decrease from $2.71 in the same period of 2016.
  • 3The acquisition of Dominion Energy Questar contributed positively to revenue and net income in 2017.
  • 4Operating revenue increased for the nine months ended September 30, 2017, driven by higher gas transmission growth and capacity benefits, partially offset by lower renewable energy investment tax credits and milder weather.
  • 5Capital expenditures for property, plant, and equipment additions were significant, reflecting ongoing investments in infrastructure.
  • 6The company successfully managed its financing activities, including debt and equity issuances, to support its capital needs.

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