• Full-Year 2024 Operating Earnings: $2.77 per share, in the top half of guidance range.
• Full-Year 2024 GAAP Earnings: $2.44 per share.
• Fourth-Quarter Operating Earnings: $0.58 per share.
• Fourth-Quarter GAAP Earnings: $0.15 per share.
• 2025 Operating Earnings Guidance: $3.28 to $3.52 per share.
• Annual Operating Earnings Growth Guidance: 5% to 7% through 2029.
• Dividend Level: $2.67 per share annually.
• Five-Year Capital Forecast (2025-2029): $50 billion, a 16% increase from prior guidance.
• Parent Leverage Expectation: Consistently below 30%.
• FFO to Debt Expectation: Approximately 15%.
• External Financing Increase: Across debt, hybrid, and equity issuance.
• Equity Issuance in 2025: $600 million through forward-settled sales, $200 million through DRIP programs, and $300 million through ATM.
• Coastal Virginia Offshore Wind Project Cost Update: Increased from $9.8 billion to $10.7 billion.
• Data Center Contracted Capacity: Approximately 40 gigawatts as of December 2024, an 88% increase from July 2024.
• Millstone Capacity Factor in 2024: 92%.

• Warning! GuruFocus has detected 7 Warning Signs with D.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dominion Energy Inc (NYSE:D) achieved operating earnings per share in the top half of their guidance range for 2024, despite weather-related challenges.
• The company successfully derisked the Coastal Virginia Offshore Wind (CVOW) project by achieving major milestones and securing 50% non-controlling equity financing.
• Dominion Energy Inc (NYSE:D) reported near-record employee safety performance in 2024.
• The company increased its five-year capital investment forecast by 16% to $50 billion, focusing on distribution, transmission, and generation to meet growing demand.
• Dominion Energy Inc (NYSE:D) reaffirmed its annual operating earnings growth guidance of 5% to 7% through 2029.

Negative Points

• The CVOW project experienced a cost increase from $9.8 billion to $10.7 billion, primarily due to higher network upgrade costs.
• Dominion Energy Inc (NYSE:D) faces regulatory lag in South Carolina, making it difficult to earn their allowed return.
• The company anticipates modestly increasing external financing, including debt, hybrid, and equity issuance, which may impact financial flexibility.
• Higher interest rates present a headwind to Dominion Energy Inc (NYSE:D)'s financial performance.
• The company is exposed to potential tariff impacts on steel and aluminum, which could affect the CVOW project costs.

Q & A Highlights

Q: Can you elaborate on the remaining variability in the Coastal Virginia Offshore Wind (CVOW) project, potential delays in supplier component deliveries, and thoughts on future wind projects? A: Robert Blue, CEO, explained that they are confident in their estimates despite awaiting more data from PJM on network upgrades. Potential tariffs on steel and aluminum are not expected to significantly impact the project. Diane Leopold, COO, added that all permits are in hand, materials purchased, and major equipment contracts are fixed-price. The project is 50% complete, with risks decreasing as it progresses. Future projects are not currently in the capital plan, with focus remaining on CVOW.

Q: Regarding the updated gigawatts on the data center side, is this incremental to PJM's forecast, and how does it affect the timeline and capital requirements? A: Robert Blue, CEO, confirmed that the gigawatts in the substation engineering phase are not included in PJM's forecast. There is no specific rule of thumb for capital requirements per gigawatt, but the demand in Virginia, especially in Loudoun County, is significant. The company is focused on ensuring they can serve this demand with reliable, affordable, and clean energy.

Q: What are the prospects for incremental large customers for Millstone, and is additionality a requirement for contracts? A: Robert Blue, CEO, stated that additionality is not essential for potential large user customers. They continue to engage with stakeholders in Connecticut and other New England states, emphasizing the importance of considering Connecticut's interests in any potential agreements.

Q: How are stakeholders reacting to the Virginia data center opportunity, and what are the implications for bill headroom? A: Robert Blue, CEO, noted that Virginia policymakers are supportive of data center expansion due to economic benefits. The increased megawatt hours sold to data centers can help with customer bill headroom. The issue of data centers paying their fair share will likely be addressed in the upcoming biennial review.

Q: What is the impact of the executive order on offshore wind on existing projects like CVOW? A: Robert Blue, CEO, believes there will be no impact on CVOW from the executive order. The project has all necessary permits and aligns with the administration's energy objectives. It is crucial for delivering power to Virginia's growing economy and has strong bipartisan support.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.