10-QPeriod: Q3 FY2022

DOMINION ENERGY, INC Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 4, 2022For Securities:D

Summary

Dominion Energy, Inc. (D) reported its financial results for the quarter and nine months ended September 30, 2022. The company demonstrated a notable increase in operating revenue, driven primarily by higher fuel-related revenue and the absence of certain refunds provided to customers in the prior year's comparable periods. This revenue growth was partially offset by increased operating expenses, particularly in electric fuel and other energy-related purchases due to higher commodity costs. Despite the rise in revenue, net income attributable to Dominion Energy saw a significant decrease year-to-date compared to the previous year. This was largely due to specific items impacting the results, including a substantial loss from the sale of Kewaunee, decreased net investment earnings on nuclear decommissioning trust funds, and charges related to RGGI compliance and Virginia fuel expenses. However, on a quarterly basis, net income attributable to Dominion Energy increased, driven by higher unrealized gains on economic hedging activities. Investors should note the significant impact of specific, non-recurring items on the year-to-date performance, while the quarterly results show a more positive trend.

Financial Highlights

45 data points
Beta

Revenue

$3.96B

Net Income

$735.00M

18.6% Net Margin

EPS (Diluted)

$0.86

Total Assets

$103.53B

Cash & Equivalents

$163.00M

Free Cash Flow

$1.31B

Financial Statements
Beta
Revenue$3.96B
Operating Expenses$2.97B
Operating Income$998.00M
Net Income$735.00M
EPS (Basic)$0.86
EPS (Diluted)$0.86
Shares Outstanding (Basic)832.60M
Shares Outstanding (Diluted)833.20M

Key Highlights

  • 1Operating revenue increased by 38% for the third quarter and 22% year-to-date, primarily driven by higher fuel costs being passed through to customers.
  • 2Net income attributable to Dominion Energy decreased by 47% year-to-date, significantly impacted by the loss on the sale of Kewaunee, lower investment earnings on nuclear decommissioning trust funds, and charges related to Virginia fuel expenses and RGGI compliance.
  • 3Diluted EPS for the third quarter increased to $0.91 from $0.79 in the prior year's quarter.
  • 4Despite the year-to-date net income decline, Dominion Energy's financing activities provided net cash provided by financing activities of $1.78 billion for the nine months ended September 30, 2022.
  • 5Capital expenditures for plant construction and other property additions increased year-to-date to $5.25 billion from $4.14 billion in the prior year.
  • 6Dominion Energy's long-term debt increased to $38.16 billion at September 30, 2022, from $37.43 billion at December 31, 2021.

Frequently Asked Questions

The primary driver of the increase in operating revenue for both the third quarter and the year-to-date period was higher fuel-related revenue. This increase is largely due to higher commodity costs for electric and gas utilities, which are recovered through customer rates.

The substantial decrease in year-to-date net income was primarily caused by several significant "specific items." These include a large loss from the sale of Kewaunee, lower investment earnings on nuclear decommissioning trust funds, and charges related to Virginia fuel expenses and RGGI compliance costs. These items masked operational improvements in other areas.

Net cash provided by operating activities decreased year-to-date by $864 million, largely due to lower deferred fuel cost recoveries and changes in working capital. Investing activities used more cash year-to-date, primarily due to increased plant construction. Financing activities provided positive cash flow, though lower than the prior year, due to lower net issuances of short-term debt and the redemption of Series A Preferred Stock.

Capital expenditures for plant construction and other property additions increased year-to-date to $5.25 billion, indicating continued investment in the company's infrastructure. The company anticipates issuing between $3.2 billion and $4.4 billion of long-term debt during 2022 to support these and other corporate purposes.