8-KEarnings & ResultsOther EventsExhibits & Filings

DOMINION ENERGY, INC 8-K Report, Financial Results (Apr 3, 2020)

Filed April 3, 2020For Securities:D

Summary

Dominion Energy, Inc. (D) announced an anticipated non-cash abandonment charge between $500 million and $650 million after-tax for the first quarter of 2020. This charge is due to the probable early retirement of certain coal- and oil-fired generating units in Virginia, influenced by economic factors and the recently passed Virginia Clean Economy Act. While the charge impacts near-term earnings, it signals a strategic shift towards cleaner energy assets. In addition to the charge, Dominion Energy is proactively managing its liquidity and capital structure. The company successfully issued $1.5 billion in 3.375% Senior Notes due 2030 and secured a new $625 million 364-day term loan. These actions demonstrate a commitment to financial flexibility and support ongoing operational and strategic initiatives.

Key Highlights

  • 1Anticipates a non-cash abandonment charge of $500-$650 million (after-tax) in Q1 2020 for early retirement of coal/oil-fired generating units.
  • 2Charge is driven by economic factors and the Virginia Clean Economy Act.
  • 3Issued $1.5 billion of 3.375% Senior Notes due 2030.
  • 4Secured a new $625 million 364-day term loan maturing March 31, 2021.
  • 5The company is taking steps to bolster its liquidity position.

Frequently Asked Questions

Dominion Energy anticipates recording an abandonment charge due to the probable early retirement of certain Virginia Electric and Power Company coal- and oil-fired generating units. This decision is influenced by economic factors and the passage of the Virginia Clean Economy Act in March 2020.

The non-cash charge is expected to be between $500 million and $650 million after-tax for the first quarter of 2020.

Dominion Energy has issued $1.5 billion in 3.375% Senior Notes due 2030 and entered into a new $625 million 364-day term loan to enhance its liquidity and financial flexibility.

The Virginia Clean Economy Act, passed in March 2020, is a key factor influencing the decision to retire older, fossil-fuel generating units, aligning the company's operations with potential future regulatory and environmental goals.