DOMINION ENERGY, INC Quarterly Report for Q2 Ended Jun 30, 2020

Summary

Dominion Energy, Inc. (D) reported a net loss of $1.17 billion ($1.41 per share) for the second quarter of 2020, a significant decrease from a net income of $54 million ($0.07 per share) in the same period of 2019. This decline was primarily driven by substantial charges related to the cancellation of the Atlantic Coast Pipeline and Supply Header Projects, amounting to $482 million, and other early retirement charges for generation facilities. Despite the net loss, operating revenue showed resilience, down only 5% year-over-year for the quarter, indicating the stable nature of its regulated utility operations. Looking at the first six months of 2020, Dominion Energy reported a net loss of $1.44 billion ($1.75 per share), compared to a net loss of $626 million ($0.78 per share) in the first half of 2019. The year-to-date results were heavily impacted by the same pipeline project charges and early retirement expenses. However, the company announced a significant strategic move in July 2020 to sell substantially all of its gas transmission and storage operations to Berkshire Hathaway Energy for approximately $10 billion, a transaction expected to close in Q4 2020. This divestiture is anticipated to generate substantial cash and allow Dominion Energy to focus on its regulated utility operations and renewable energy initiatives.

Key Highlights

• 1Reported a net loss of $1.17 billion ($1.41 EPS) for Q2 2020, a significant deterioration from net income of $54 million ($0.07 EPS) in Q2 2019, largely due to charges from the Atlantic Coast Pipeline cancellation and other asset impairments.
• 2Year-to-date net loss widened to $1.44 billion ($1.75 EPS) in 2020 from a net loss of $626 million ($0.78 EPS) in 2019, primarily due to the same charges.
• 3Operating revenue for Q2 2020 was $3.59 billion, down 5% from $3.97 billion in Q2 2019, reflecting impacts from weather and COVID-19 on customer usage.
• 4Announced a major strategic initiative to sell substantially all of its gas transmission and storage operations to Berkshire Hathaway Energy for approximately $10 billion, expected to close in Q4 2020.
• 5The company reported significant impairment charges and other charges totaling $531 million in Q2 2020, primarily related to the abandonment of the Supply Header Project and early retirement of generation facilities.
• 6Dominion Energy Virginia (a key segment) showed resilience with a net income increase of $44 million year-over-year for Q2 2020, driven by rate adjustments and absence of certain charges.
• 7The company's liquidity remains strong, with $5.7 billion in unused capacity under its joint revolving credit facility and an additional $675 million available under a new 364-Day Revolving Credit Agreement as of June 30, 2020.

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