What is an "at the market" (ATM) offering?

An "at the market" (ATM) offering allows a company to sell its stock gradually over a period of time directly into the existing stock market at prevailing market prices. This provides flexibility for companies to raise capital without the need for a traditional underwritten offering.

Why is Dominion Energy establishing a new ATM program?

Dominion Energy is establishing a new ATM program to have the flexibility to raise up to $1 billion in capital by selling its common stock. This is likely to fund ongoing operations, potential acquisitions, or other strategic corporate purposes as needed.

What is the significance of replacing the old ATM program with a new one?

The replacement of the previous $500 million ATM program, which was fully utilized, with a larger $1 billion program signifies Dominion Energy's continued intention to utilize equity financing. It also suggests confidence in the company's stock as a funding source and the market's capacity to absorb additional shares.

How will the shares be sold under this new program?

The shares will be sold through various permitted methods, including directly on the New York Stock Exchange, through market makers, or via privately negotiated transactions. This broad range of selling options provides Dominion Energy with considerable flexibility in executing the program.

D 8-K SEC Disclosure — Mar 1, 2018

Summary

Dominion Energy, Inc. (D) announced on February 28, 2018, the establishment of a new "at the market" (ATM) equity offering program, authorizing the sale of up to $1 billion of its common stock. This program replaces a previous $500 million ATM program that was fully utilized and terminated in January 2018. The company has engaged six prominent financial institutions as sales agents, including Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, to facilitate these sales. The offerings can be executed through various methods, including on the New York Stock Exchange or via privately negotiated transactions, providing flexibility for Dominion Energy to capitalize on market opportunities to raise capital. The shares to be sold will be issued under an existing effective registration statement filed in June 2017.

Key Highlights

1Dominion Energy established a new "at the market" (ATM) equity offering program to sell up to $1 billion of common stock.
2This new program replaces a prior $500 million ATM program that was fully utilized and terminated.
3Six major financial institutions have been appointed as sales agents for the program.
4Sales can occur on the New York Stock Exchange or through privately negotiated transactions.
5The program offers flexibility to raise capital as market conditions permit.
6Shares will be issued under an existing effective registration statement.
7This move indicates the company's strategy to potentially access equity capital markets to fund operations or strategic initiatives.

DOMINION ENERGY, INC 8-K Report, Corporate Update (Mar 1, 2018)

Summary

Key Highlights

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