Summary
Dominion Energy, Inc. (D) filed an 8-K on March 7, 2012, to provide an update on its hedged power positions and affirm its 2012 operating earnings guidance. Management will be meeting with investors between March 7 and March 9, 2012, to discuss these updates. The company reaffirmed its 2012 operating earnings guidance range of $3.10 to $3.35 per share. Key updates include revised hedging percentages for its New England power generation assets. The Millstone power station shows increased hedging for 2012 and 2013, with 94% and 80% hedged, respectively, while hedging for 2014 has decreased to 40%. The company's coal-fired units in New England (Brayton Point and Salem Harbor) are hedged at 26% for 2012. The average hedged power prices for the NEPOOL baseload are provided for 2012 through 2014. The company also updated its sensitivity analysis, indicating a smaller earnings per share impact from fluctuations in New England power prices than previously stated.
Key Highlights
- 1Dominion affirmed its 2012 operating earnings per share guidance range of $3.10 to $3.35.
- 2Millstone power station hedging levels updated: 94% for 2012, 80% for 2013, and 40% for 2014.
- 3New England coal-fired units (Brayton Point and Salem Harbor) are 26% hedged for 2012.
- 4Average NEPOOL baseload hedged power prices for 2012, 2013, and 2014 are $49.33, $49.93, and $49.73 per MWh, respectively.
- 5Updated earnings per share sensitivity to a $5/MWh change in New England power prices: approximately 2 cents for 2012 and 5 cents for 2013.
- 6Management will be actively engaging with investors to discuss these updates during investor meetings.
- 7The company continues to emphasize "operating earnings" as its primary performance metric for investor communications.