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.