What is the purpose of the "At-The-Market" common stock program?

The purpose of the "At-The-Market" (ATM) program is to provide Dominion Energy with flexibility to raise capital by selling up to $500 million of its common stock over time, as market conditions or capital needs dictate. This allows the company to access funding efficiently without the need for a traditional underwritten offering.

What is Dominion Energy's stance on the impact of COVID-19?

Dominion Energy is actively monitoring the COVID-19 outbreak and taking steps to mitigate potential risks. This includes safeguarding employees, updating business continuity plans, assuring customers that disconnections for non-payment are temporarily suspended, and working with suppliers to address potential supply chain disruptions.

Does this filing indicate that Dominion Energy is facing immediate financial distress?

This filing does not suggest immediate financial distress. The ATM program is a common capital-raising tool used by many companies to maintain financial flexibility. The COVID-19 disclosures reflect a proactive approach to managing potential business impacts from the global pandemic, which is prudent for all companies at that time.

D 8-K SEC Disclosure — Mar 17, 2020

Q: How will Dominion Energy sell its shares under the ATM program?

Shares can be sold through several methods, including privately negotiated transactions, directly on the New York Stock Exchange, or through market makers. These methods are consistent with the definition of an "at-the-market" offering under securities laws.

Summary

Dominion Energy, Inc. (D) announced on March 17, 2020, its entry into an "At-The-Market" (ATM) common stock program with four major sales agents: BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC. This program allows the company to issue and sell up to $500 million of its common stock over time. The sales can occur through privately negotiated transactions or other methods permitted under "at-the-market" offering rules, including direct sales on the New York Stock Exchange or through market makers. Furthermore, the company provided an update on its response to the COVID-19 pandemic. Dominion Energy is actively monitoring the situation and implementing measures to protect its employees, ensure business continuity, and mitigate potential supply chain disruptions. The company has also temporarily suspended disconnections for non-payment to support its customers during this uncertain economic period. These disclosures are important for investors to understand the company's capital raising flexibility and its proactive approach to managing the operational and economic impacts of the global health crisis.

Key Highlights

1Dominion Energy entered into an "At-The-Market" (ATM) common stock program valued at up to $500 million.
2Four prominent financial institutions (BofA Securities, Goldman Sachs, J.P. Morgan, Morgan Stanley) are acting as sales agents for the ATM program.
3The ATM program allows for the sale of common stock through various methods, including negotiated transactions and sales on the NYSE.
4Shares sold under the program will be issued under an existing effective registration statement (Form S-3).
5Dominion Energy is actively monitoring the COVID-19 pandemic and implementing mitigation strategies.
6The company is prioritizing employee safety and updating business continuity plans in light of COVID-19.
7Disconnections for non-payment have been temporarily suspended for customers, and the company is assessing supply chain impacts.

DOMINION ENERGY, INC 8-K Report, Corporate Update (Mar 17, 2020)

Summary

Key Highlights

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