Exhibit 99.1
| REVISED | ||||||
| 4Q10 | ||||||
| Earnings | ||||||
| Release Kit | ||||||
| February 14, 2011 | ||||||
Dominion Resources, Inc.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Table of Contents
IMPORTANT NOTES TO INVESTORS | 3 | |||
EARNINGS REPORT AND ACCOMPANYING SCHEDULES | 5 | |||
EARNINGS REPORT | 5 | |||
SCHEDULE 1 - SEGMENT OPERATING EARNINGS | 8 | |||
SCHEDULE 2 - RECONCILIATIONOF 2010 OPERATING EARNINGSTO REPORTED EARNINGS | 9 | |||
SCHEDULE 3 - RECONCILIATIONOF 2009 OPERATING EARNINGSTO REPORTED EARNINGS | 10 | |||
SCHEDULE 4 - RECONCILIATIONOF 2010 EARNINGSTO 2009 | 11 | |||
FINANCIALS | 12 | |||
CONSOLIDATED FINANCIAL STATEMENTS (GAAP) | 12 | |||
SEGMENT OPERATING EARNINGS RESULTS | 15 | |||
OPERATING STATISTICS | 21 | |||
SCHEDULEOF LONG-TERM DEBT | 24 | |||
SCHEDULEOF DEBT MATURITY | 25 | |||
SCHEDULEOF CHANGEIN CAPITALIZATION | 26 | |||
FORECAST AND OUTLOOK | 27 | |||
RECONCILIATIONOF OPERATING EARNINGS GUIDANCE | 27 | |||
2010 | 27 | |||
4Q10 | 28 | |||
Dominion Generation – Non-Contracted Plants EBITDA | 29 | |||
HEDGING | 30 | |||
GAAP RECONCILIATION | 31 | |||
RECONCILIATIONOF 2010 CONSOLIDATED OPERATING EARNINGSTO REPORTED EARNINGS | 31 | |||
RECONCILIATIONOF 2009 CONSOLIDATED OPERATING EARNINGSTO REPORTED EARNINGS | 32 | |||
RECONCILIATIONOF 2010 CORPORATEAND OTHER OPERATING EARNINGSTO REPORTED EARNINGS | 33 | |||
RECONCILIATIONOF 2009 CORPORATEAND OTHER OPERATING EARNINGSTO REPORTED EARNINGS | 34 | |||
RECONCILIATIONOF 2009 OPERATING EARNINGSTO REPORTED EARNINGS | 35 | |||
RECONCILIATIONOF 2010 OPERATING EARNINGSTO REPORTED EARNINGS | 36 | |||
RECONCILIATIONOF 4Q09 OPERATING EARNINGSTO REPORTED EARNINGS | 37 | |||
RECONCILIATIONOF 4Q10 OPERATING EARNINGSTO REPORTED EARNINGS | 38 | |||
2010AND 2011 EARNINGS EXPECTATIONS | 39 | |||
APPENDIX | 40 | |||
2010 WEATHER VARIANCE | 40 | |||
SUPPLEMENTAL TREASURY INFORMATION | 41 | |||
Dominion Liquidity Position | 41 | |||
LISTOF REVISED SCHEDULES | 42 | |||
| February 14, 2011 | 2 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Important Notes to Investors
This kit contains certain forward-looking statements, including forecasted operating earnings for first-quarter and full-year 2011 which are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations may include factors that are beyond the company’s ability to control or estimate precisely, fluctuations in energy-related commodity prices, the timing of the closing dates of acquisitions or divestitures, estimates of future market conditions, access to and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, the timing and receipt of regulatory approvals necessary for planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects as scheduled. Other factors include, but are not limited to, weather conditions, including the effects of hurricanes and major storms on operations, the behavior of other market participants, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, economic conditions in the company’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, counter-party credit risks, risks related to energy trading and marketing, adverse outcomes in litigation matters, and other uncertainties. Other risk factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.
Certain information provided in this Release Kit includes financial measures that are not required by, or presented in accordance with generally accepted accounting principles (GAAP), including operating earnings before interest and taxes (EBIT) and operating earnings before interest, taxes, depreciation and amortization (EBITDA). These non-GAAP financial measures should not be considered as alternatives to GAAP measures, such as net income, operating income, or earnings per share, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. Dominion has included reconciliations to the most directly comparable financial measures it is able to calculate and report in accordance with GAAP.
The consolidated financial data and statistics in this REVISED 4Q10 Earnings Release Kit and its individual components reflect the financial position and operating results of Dominion and its primary operating segments through December 31, 2010. Independent auditors have not audited any of the financial and operating statements. Projections or forecasts shown in this document are based on the assumptions listed in this document and are subject to change at any time. Dominion undertakes no obligation to update any forward-looking information statement to reflect developments after the statement is made.
This REVISED 4Q10 Earnings Release Kit has been prepared primarily for security analysts and investors in the hope that it will serve as a convenient and useful reference document. The format of this release kit may change in the future as we continue to try to meet the needs of security analysts and investors. This release kit is not intended for use in connection with any sale, offer to sell, or solicitation of any offer to buy securities.
| February 14, 2011 | 3 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Please continue to check our website regularly atwww.dom.com/investors for the most recent updates.
| February 14, 2011 | 4 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Earnings Report and Accompanying Schedules
Earnings Report
SUMMARY OF DOMINION’S REVISED 2010 EARNINGS AND 2011 GUIDANCE
As of February 14, 2011, Dominion’s unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (GAAP) for the 12 months ended Dec. 31, 2010, of $2.81 billion ($4.76 per share), compared with reported earnings of $1.29 billion ($2.17 per share) for the same period in 2009.
Operating earnings for the 12 months ended Dec. 31, 2010, amounted to $1.97 billion ($3.34 per share), compared to operating earnings of $1.94 billion ($3.27 per share) for the same period in 2009. Operating earnings are defined as reported (GAAP) earnings adjusted for certain items.
Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion also uses operating earnings internally for budgeting, for reporting to the board of directors, for the company’s incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
Business segment results and detailed descriptions of items included in 2010 and 2009 reported earnings but excluded from operating earnings can be found on Schedules 1, 2 and 3 of this release kit.
Full-year 2010 operating earnings compared to 2009
The increase in full-year 2010 operating earnings per share as compared to full-year 2009 operating earnings per share is primarily attributable to favorable weather, share accretion, higher rate adjustment clause revenues and lower outage costs. Partially offsetting these positives were the absence of earnings from the company’s E&P operations, higher income taxes and lower merchant generation margins.
Fourth-quarter 2010 operating earnings compared to 2009
Fourth-quarter 2010 operating earnings per share were equivalent to fourth-quarter 2009 operating earnings per share. Positive drivers for the quarter were favorable weather in the regulated electric service territory, higher rate adjustment clause revenue
| February 14, 2011 | 5 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
and lower outage costs. Offsetting these positives were the absence of earnings from the company’s E&P operations, a higher effective income tax rate and lower contributions from producer services.
Complete details of fourth-quarter 2010 and full-year operating earnings as compared to fourth-quarter and full-year 2009 can be found on Schedule 4 of this release.
First-quarter 2011 operating earnings guidance
Dominion expects first-quarter 2011 operating earnings in the range of 85 cents per share to 95 cents per share as compared to first-quarter 2010 operating earnings of 96 cents per share. Positive factors for the first quarter of 2011 compared to the same period of the prior year include higher rate adjustment clause revenue, lower outage costs, lower storm damage and restoration costs and fewer shares outstanding. Negative factors for the quarter include a return to normal weather, lower merchant generation margins, the absence of earnings from the company’s E&P operations and higher interest expense. GAAP earnings for the first quarter of 2010 were 29 cents per share.
Full-year 2011 operating earnings guidance
Dominion is affirming its 2011 operating earnings guidance in the range of $3.00 to $3.30 per share. Incorporated in this guidance is the impact of the bonus depreciation provisions of the recent tax bills enacted by Congress that are expected to generate significant cash tax savings to Dominion through 2013. The company plans to use a portion of this cash benefit to repurchase $400 million to $700 million of equity in 2011, thereby offsetting the expected negative impact to earnings per share caused by the resulting loss of certain tax deductions and other related factors.
In providing its first-quarter and full-year 2011 operating earnings guidance, the company notes that there could be differences between expected reported earnings and estimated operating earnings for matters such as, but not limited to, divestitures or changes in accounting principles. At this time, Dominion management is not able to estimate the impact, if any, of these items on reported earnings. Accordingly, the company is not able to provide a corresponding GAAP equivalent for its operating earnings guidance.
This release contains certain forward-looking statements, including forecasted operating earnings for first-quarter and full-year 2011 which are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations may include factors that are beyond the company’s ability to control or estimate precisely, fluctuations in energy-related commodity prices, the timing of the closing dates of acquisitions or divestitures, estimates of future market conditions, access to
| February 14, 2011 | 6 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, the timing and receipt of regulatory approvals necessary for planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects as scheduled. Other factors include, but are not limited to, weather conditions, including the effects of hurricanes and major storms on operations, the behavior of other market participants, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, economic conditions in the company’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, counter-party credit risks, risks related to energy trading and marketing, adverse outcomes in litigation matters, and other uncertainties. Other risk factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.
###
| February 14, 2011 | 7 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule 1 - Segment Operating Earnings
Preliminary, Unaudited
| (millions, except earnings per share) | Three months ended December 31 | |||||||||||
| 2010 | 2009 | Change | ||||||||||
Operating Revenue (GAAP Based1, 2) | $ | 3,746 | $ | 3,176 | $ | 570 | ||||||
Earnings: | ||||||||||||
Dominion Virginia Power | $ | 115 | $ | 92 | $ | 23 | ||||||
Dominion Energy | 122 | 145 | (23 | ) | ||||||||
Dominion Generation | 203 | 183 | 20 | |||||||||
Corporate and Other | (74 | ) | (46 | ) | (28 | ) | ||||||
OPERATING EARNINGS | $ | 366 | $ | 374 | $ | (8 | ) | |||||
Items excluded from operating earnings 3, 4 | (68 | ) | (383 | ) | 315 | |||||||
REPORTED EARNINGS2 | $ | 298 | $ | (9 | ) | $ | 307 | |||||
Common Shares Outstanding (average, diluted) | 582.1 | 598.1 | ||||||||||
Earnings Per Share (EPS): | ||||||||||||
Dominion Virginia Power | $ | 0.20 | $ | 0.15 | $ | 0.05 | ||||||
Dominion Energy | 0.21 | 0.25 | (0.04 | ) | ||||||||
Dominion Generation | 0.35 | 0.31 | 0.04 | |||||||||
Corporate and Other | (0.13 | ) | (0.08 | ) | (0.05 | ) | ||||||
OPERATING EARNINGS | $ | 0.63 | $ | 0.63 | $ | — | ||||||
Items excluded from operating earnings 3 | (0.12 | ) | (0.64 | ) | 0.52 | |||||||
REPORTED EARNINGS2 | $ | 0.51 | $ | (0.01 | ) | $ | 0.52 | |||||
| (millions, except earnings per share) | Twelve months ended December 31 | |||||||||||
| 2010 | 2009 | Change | ||||||||||
Operating Revenue (GAAP Based1, 2) | $ | 15,197 | $ | 14,798 | $ | 399 | ||||||
Earnings: | ||||||||||||
Dominion Virginia Power | $ | 448 | $ | 384 | $ | 64 | ||||||
Dominion Energy | 475 | 517 | (42 | ) | ||||||||
Dominion Generation | 1,291 | 1,281 | 10 | |||||||||
Corporate and Other | (243 | ) | (240 | ) | (3 | ) | ||||||
OPERATING EARNINGS | $ | 1,971 | $ | 1,942 | $ | 29 | ||||||
Items excluded from operating earnings 3, 5 | 837 | (655 | ) | 1,492 | ||||||||
REPORTED EARNINGS2 | $ | 2,808 | $ | 1,287 | $ | 1,521 | ||||||
Common Shares Outstanding (average, diluted) | 590.1 | 593.7 | ||||||||||
Earnings Per Share (EPS): | ||||||||||||
Dominion Virginia Power | $ | 0.76 | $ | 0.65 | $ | 0.11 | ||||||
Dominion Energy | 0.80 | 0.87 | (0.07 | ) | ||||||||
Dominion Generation | 2.19 | 2.16 | 0.03 | |||||||||
Corporate and Other | (0.41 | ) | (0.41 | ) | — | |||||||
OPERATING EARNINGS | $ | 3.34 | $ | 3.27 | $ | 0.07 | ||||||
Items excluded from operating earnings 3 | 1.42 | (1.10 | ) | 2.52 | ||||||||
REPORTED EARNINGS2 | $ | 4.76 | $ | 2.17 | $ | 2.59 | ||||||
| 1) | 2009 amounts have been recast due to the reclassification of Peoples’ results to discontinued operations. |
| 2) | Determined in accordance with Generally Accepted Accounting Principles (GAAP). |
| 3) | Items excluded from operating earnings are reported in Corporate and Other segment. Refer to Schedules2 and 3 for details, or find “GAAP Reconciliation” on Dominion’s website at www.dom.com/investors. |
| 4) | Pre-tax amounts for the current period and the prior period are ($25) million and ($718) million, respectively. |
| 5) | Pre-tax amounts for the current period and the prior period are $1.759 billion and ($1.081) billion, respectively. |
| February 14, 2011 | 8 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule 2 - Reconciliation of 2010 Operating Earnings to Reported Earnings
2010 Earnings (twelve months ended December 31, 2010)
The net effects of the following items, all shown on an after-tax basis, are included in 2010 reported earnings, but are excluded from operating earnings:
| • | $ 1.4 billion net benefit resulting from the sale of our Appalachian E&P operations, primarily reflecting the gain on the sale, partially offset by certain transaction costs and other related charges. |
| • | $206 million after-tax charge related to our work-force reduction program, primarily reflecting severance pay and other benefits to affected employees. |
| • | $155 million net loss from Peoples discontinued operations, primarily reflecting the loss on the sale recorded in February 2010. |
| • | $127 million of impairment charges related to certain merchant generation facilities. |
| • | $57 million charge related to health care legislation changes, eliminating the tax deduction for a portion of retiree prescription drug costs. |
| • | Impact of interim tax expense provision resulting from the impact of items excluded from operating earnings on our 2010 estimated annual effective tax rate. |
| • | $1 million net expense related to other items. |
(millions, except per share amounts) | 1Q10 | 2Q10 | 3Q10 | 4Q10 | YTD 20102 | |||||||||||||||
Operating earnings | $ | 576 | $ | 426 | $ | 603 | $ | 366 | $ | 1,971 | ||||||||||
Items excluded from operating earnings (after-tax): | ||||||||||||||||||||
Items related to the sale of Appalachian E&P operations | 14 | 1,387 | (18 | ) | 1,383 | |||||||||||||||
Work force reduction program | (206 | ) | (206 | ) | ||||||||||||||||
Peoples discontinued operations | (149 | ) | 2 | (8 | ) | (155 | ) | |||||||||||||
Impairment of merchant generation assets | (95 | ) | (32 | ) | (127 | ) | ||||||||||||||
Healthcare reform legislation - Medicare Part D tax impact | (57 | ) | (57 | ) | ||||||||||||||||
Interim tax provision | (16 | ) | 53 | (24 | ) | (13 | ) | 0 | ||||||||||||
Other items | 12 | (12 | ) | (4 | ) | 3 | (1 | ) | ||||||||||||
Total items excluded from operating earnings (after-tax) 1 | (402 | ) | 1,335 | (28 | ) | (68 | ) | 837 | ||||||||||||
Reported net income | $ | 174 | $ | 1,761 | $ | 575 | $ | 298 | $ | 2,808 | ||||||||||
Common shares outstanding (average, diluted) | 600.9 | 591.4 | 586.4 | 582.1 | 590.1 | |||||||||||||||
Operating earnings per share | $ | 0.96 | $ | 0.72 | $ | 1.03 | $ | 0.63 | $ | 3.34 | ||||||||||
Items excluded from operating earnings (after-tax) | (0.67 | ) | 2.26 | (0.05 | ) | (0.12 | ) | 1.42 | ||||||||||||
Reported earnings per share | $ | 0.29 | $ | 2.98 | $ | 0.98 | $ | 0.51 | $ | 4.76 | ||||||||||
| 1) | Pre-tax amounts for items excluded from operating earnings are reflected in the following table: |
| 1Q10 | 2Q10 | 3Q10 | 4Q10 | YTD 2010 | ||||||||||||||||
Items excluded from operating earnings: | ||||||||||||||||||||
Items related to the sale of Appalachian E&P operations | 20 | 2,405 | 2,425 | |||||||||||||||||
Work force reduction program | (338 | ) | (338 | ) | ||||||||||||||||
Peoples discontinued operations | (137 | ) | 3 | (134 | ) | |||||||||||||||
Impairment of merchant generation assets | (163 | ) | (31 | ) | (194 | ) | ||||||||||||||
Other items | 20 | (20 | ) | (6 | ) | 6 | 0 | |||||||||||||
Total items excluded from operating earnings | ($435 | ) | $ | 2,225 | ($6 | ) | ($25 | ) | $ | 1,759 | ||||||||||
| 2) | YTD 2010 EPS may not equal sum of quarters due to share count differences. |
| February 14, 2011 | 9 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule 3 - Reconciliation of 2009 Operating Earnings to Reported Earnings
2009 Earnings (twelve months ended December 31, 2009)2
The net effects of the following items, all shown on an after-tax basis, are included in 2009 reported earnings, but are excluded from operating earnings:
| • | $281 million impairment charge resulting from the first-quarter ceiling test performed for our gas and oil properties under the full cost method accounting with a subsequent update for estimated state taxes in the second quarter. |
| • | $435 million after-tax charge in connection with the settlement of Virginia Power’s 2009 rate case proceedings. |
| • | $2 million net gain related to our investments in nuclear decommissioning trust funds. |
| • | $62 million benefit due to a downward revision in the nuclear decommissioning asset retirement obligation (ARO) for a power station unit that is no longer in service. |
| • | $26 million of earnings from Peoples discontinued operations. |
| • | $29 million net expense related to other items. |
(millions, except per share amounts) | 1Q09 | 2Q09 | 3Q09 | 4Q09 | YTD 20093 | |||||||||||||||
Operating earnings | $ | 574 | $ | 404 | $ | 590 | $ | 374 | $ | 1,942 | ||||||||||
Items excluded from operating earnings (after-tax)1: | ||||||||||||||||||||
Impairment of gas and oil properties | (272 | ) | (9 | ) | (281 | ) | ||||||||||||||
Proposed rate settlement | (435 | ) | (435 | ) | ||||||||||||||||
Net gains (losses) in nuclear decommissioning trust funds | (50 | ) | 12 | 34 | 6 | 2 | ||||||||||||||
ARO revision | 62 | 62 | ||||||||||||||||||
Peoples discontinued operations | 9 | (15 | ) | (41 | ) | 73 | 26 | |||||||||||||
Other items | (13 | ) | 0 | 11 | (27 | ) | (29 | ) | ||||||||||||
Total items excluded from operating earnings (after-tax)1, 2 | (326 | ) | 50 | 4 | (383 | ) | (655 | ) | ||||||||||||
Reported net income | $ | 248 | $ | 454 | $ | 594 | ($9 | ) | $ | 1,287 | ||||||||||
Common shares outstanding (average, diluted)4 | 585.7 | 594.0 | 596.3 | 598.1 | 593.7 | |||||||||||||||
Operating earnings per share | $ | 0.98 | $ | 0.68 | $ | 0.99 | $ | 0.63 | $ | 3.27 | ||||||||||
Items excluded from operating earnings (after-tax) | (0.56 | ) | 0.08 | 0.01 | (0.64 | ) | (1.10 | ) | ||||||||||||
Reported earnings per share | $ | 0.42 | $ | 0.76 | $ | 1.00 | ($0.01 | ) | $ | 2.17 | ||||||||||
| 1) | Pre-tax amounts for items excluded from operating earnings are reflected in the following table: |
| 1Q09 | 2Q09 | 3Q09 | 4Q09 | YTD 2009 | ||||||||||||||||
Items excluded from operating earnings: | ||||||||||||||||||||
Impairment of gas and oil properties | (455 | ) | (455 | ) | ||||||||||||||||
Proposed rate settlement | (712 | ) | (712 | ) | ||||||||||||||||
Net gains (losses) in nuclear decommissioning trust funds | (83 | ) | 19 | 57 | 11 | 4 | ||||||||||||||
ARO revision | 103 | 103 | ||||||||||||||||||
Peoples discontinued operations | 36 | 12 | (21 | ) | 15 | 42 | ||||||||||||||
Other items | (23 | ) | (10 | ) | 2 | (32 | ) | (63 | ) | |||||||||||
Total items excluded from operating earnings | (525 | ) | 124 | 38 | (718 | ) | (1,081 | ) | ||||||||||||
| 2) | 2009 amounts have been recast due to the reclassification of Peoples’ results to discontinued operations. |
| 3) | YTD 2009 EPS may not equal sum of quarters due to share count differences. |
| 4) | As a result of a net loss from continuing operations in 4Q09, the issuance of common stock under potentially-dilutive securities was considered antidilutive and therefore not included in the calculation of the earnings per share for that period. |
| February 14, 2011 | 10 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule 4 - Reconciliation of 2010 Earnings to 2009
| Preliminary, unaudited (millions, except EPS) | Three Months Ended December 31, 2010 vs. 2009 | Twelve Months Ended December 31, 2010 vs. 2009 | ||||||||||||||
| Increase /(Decrease) | Increase /(Decrease) | |||||||||||||||
Reconciling Items | Amount | EPS | Amount | EPS | ||||||||||||
Dominion Virginia Power | ||||||||||||||||
Regulated electric sales: | ||||||||||||||||
Weather | $ | 8 | $ | 0.01 | $ | 48 | $ | 0.08 | ||||||||
FERC transmission revenue | 10 | 0.02 | 40 | 0.07 | ||||||||||||
Other | 4 | 0.01 | (4 | ) | (0.01 | ) | ||||||||||
Storm damage and service restoration -distribution operations | 3 | 0.01 | (11 | ) | (0.02 | ) | ||||||||||
Depreciation and amortization | (4 | ) | (0.01 | ) | (15 | ) | (0.03 | ) | ||||||||
Retail energy marketing operations | 8 | 0.01 | 1 | 0.00 | ||||||||||||
Other | (6 | ) | (0.01 | ) | 5 | 0.01 | ||||||||||
Share accretion | — | 0.01 | — | 0.01 | ||||||||||||
Change in contribution to operating earnings | $ | 23 | $ | 0.05 | $ | 64 | $ | 0.11 | ||||||||
Dominion Energy | ||||||||||||||||
Gas distribution margin: | ||||||||||||||||
Weather | $ | 1 | $ | 0.00 | ($2 | ) | $ | 0.00 | ||||||||
AMR/PIR revenue | 4 | 0.01 | 11 | 0.02 | ||||||||||||
Base gas sale | 10 | 0.01 | 10 | 0.01 | ||||||||||||
Other | 1 | 0.00 | 15 | 0.03 | ||||||||||||
Producer services | (12 | ) | (0.02 | ) | (27 | ) | (0.05 | ) | ||||||||
Gas and Oil - disposed operations | (31 | ) | (0.05 | ) | (61 | ) | (0.10 | ) | ||||||||
Cove Point expansion | 0 | 0.00 | 20 | 0.03 | ||||||||||||
Other | 4 | 0.01 | (8 | ) | (0.02 | ) | ||||||||||
Share accretion | — | 0.00 | — | 0.01 | ||||||||||||
Change in contribution to operating earnings | ($23 | ) | ($0.04 | ) | ($42 | ) | ($0.07 | ) | ||||||||
Dominion Generation | ||||||||||||||||
Regulated electric sales: | ||||||||||||||||
Weather | $ | 15 | $ | 0.03 | $ | 104 | $ | 0.18 | ||||||||
Rate Adjustment Clause revenue | 22 | 0.03 | 95 | 0.16 | ||||||||||||
Other | 4 | 0.01 | (23 | ) | (0.04 | ) | ||||||||||
Merchant generation margin | (2 | ) | 0.00 | (209 | ) | (0.36 | ) | |||||||||
PJM ancillary services | (1 | ) | 0.00 | 27 | 0.05 | |||||||||||
Outage costs | 13 | 0.02 | 29 | 0.05 | ||||||||||||
Other O&M expense | 1 | 0.00 | 32 | 0.05 | ||||||||||||
Income tax and other taxes | (36 | ) | (0.06 | ) | (44 | ) | (0.08 | ) | ||||||||
Other | 4 | 0.00 | (1 | ) | 0.00 | |||||||||||
Share accretion | — | 0.01 | — | 0.02 | ||||||||||||
Change in contribution to operating earnings | $ | 20 | $ | 0.04 | $ | 10 | $ | 0.03 | ||||||||
Corporate and Other | ||||||||||||||||
Change in contribution to operating earnings | ($28 | ) | ($0.05 | ) | ($3 | ) | $ | 0.00 | ||||||||
Change in consolidated operating earnings | ($8 | ) | $ | 0.00 | $ | 29 | $ | 0.07 | ||||||||
Change in items excluded from operating earnings 1 | $ | 315 | $ | 0.52 | $ | 1,492 | $ | 2.52 | ||||||||
Change in reported earnings (GAAP) | $ | 307 | $ | 0.52 | $ | 1,521 | $ | 2.59 | ||||||||
| 1) | Refer to Schedules 2 and 3 for details of items excluded from operating earnings, or find “GAAP Reconciliation” on Dominion’s website at www.dom.com/investors. |
| February 14, 2011 | 11 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Financials
Consolidated Financial Statements (GAAP)
Dominion Consolidated *
Preliminary and Unaudited Income Statements (GAAP Based)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2010 | 2009 ** | 2010 | 2009 ** | |||||||||||||
| (millions, except per share amounts) | ||||||||||||||||
Operating Revenue | $ | 3,746 | $ | 3,176 | $ | 15,197 | $ | 14,798 | ||||||||
Operating Expenses | ||||||||||||||||
Electric fuel and other energy - related purchases | 986 | 1,074 | 4,150 | 4,285 | ||||||||||||
Purchased electric capacity | 120 | 102 | 453 | 411 | ||||||||||||
Purchased gas | 500 | 561 | 2,050 | 2,200 | ||||||||||||
Other operations and maintenance | 1,015 | 1,080 | 3,724 | 3,712 | ||||||||||||
Depreciation, depletion and amortization | 261 | 314 | 1,055 | 1,138 | ||||||||||||
Other taxes | 127 | 117 | 532 | 483 | ||||||||||||
Total operating expenses | 3,009 | 3,248 | 11,964 | 12,229 | ||||||||||||
Gain on sale of Appalachian E&P operations | — | — | 2,467 | — | ||||||||||||
Income (loss) from operations | 737 | (72 | ) | 5,700 | 2,569 | |||||||||||
Other income | 60 | 58 | 169 | 194 | ||||||||||||
Interest and related charges | 232 | 233 | 832 | 889 | ||||||||||||
Income (loss) from continuing operations including noncontrolling interests before income taxes | 565 | (247 | ) | 5,037 | 1,874 | |||||||||||
Income tax expense (benefit) | 254 | (170 | ) | 2,057 | 596 | |||||||||||
Income (loss) from continuing operations including noncontrolling interests | 311 | (77 | ) | 2,980 | 1,278 | |||||||||||
Income (loss) from discontinued operations (net of tax) | (8 | ) | 73 | (155 | ) | 26 | ||||||||||
Net Income (loss) including noncontrolling interests | $ | 303 | $ | (4 | ) | $ | 2,825 | $ | 1,304 | |||||||
Noncontrolling interests | 5 | 5 | 17 | 17 | ||||||||||||
Net Income (loss) attributable to Dominion | $ | 298 | $ | (9 | ) | $ | 2,808 | $ | 1,287 | |||||||
Reported earnings per common share - diluted | $ | 0.51 | $ | (0.01 | ) | $ | 4.76 | $ | 2.17 | |||||||
Average shares outstanding, diluted | 582.1 | 598.1 | 590.1 | 593.7 | ||||||||||||
| * | The notes contained in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements. |
| ** | 2009 amounts have been recast due to the reclassification of Peoples’ results to discontinued operations. |
| February 14, 2011 | 12 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion Consolidated *
Preliminary and Unaudited Balance Sheets (Summarized)
($ in Millions)
| At December 31, | ||||||||
| 2010 | 2009 | |||||||
Assets | ||||||||
Assets held for sale | $ | — | $ | 1,018 | ||||
Other current assets | 5,802 | 5,799 | ||||||
Total Current Assets | 5,802 | 6,817 | ||||||
Investments | 3,752 | 3,492 | ||||||
Property, Plant and Equipment, Net | 26,713 | 25,592 | ||||||
Deferred Charges and Other Assets | 6,595 | 6,653 | ||||||
Total Assets | $ | 42,862 | $ | 42,554 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Securities due within one year | $ | 497 | $ | 1,137 | ||||
Short-term debt | 1,386 | 1,295 | ||||||
Liabilities held for sale | — | 428 | ||||||
Other current liabilities | 3,898 | 3,973 | ||||||
Total Current Liabilities | 5,781 | 6,833 | ||||||
Long-Term Debt | 15,758 | 15,481 | ||||||
Deferred Credits and Other Liabilities | 9,033 | 8,798 | ||||||
Total Liabilities | 30,572 | 31,112 | ||||||
Subsidiary Preferred Stock Not Subject To Mandatory Redemption | 257 | 257 | ||||||
Common Shareholders’ Equity | 12,033 | 11,185 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 42,862 | $ | 42,554 | ||||
| * | The notes contained in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements. |
| February 14, 2011 | 13 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion Consolidated *
Preliminary and Unaudited Statements of Cash Flows (Summarized)
($ in Millions)
| Year Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
Operating Activities | ||||||||
Net Income including noncontrolling interests | $ | 2,825 | $ | 1,304 | ||||
Adjustments to reconcile net income to net cash from operating activities | ||||||||
Gain on sale of Appalachian E&P operations | (2,467 | ) | — | |||||
Loss on sale of Peoples | 113 | — | ||||||
Accrued charges related to workforce reduction program | 229 | — | ||||||
Impairment of merchant generation assets | 194 | — | ||||||
Impairment of gas and oil properties | 21 | 455 | ||||||
Reserve for rate refunds | — | 794 | ||||||
Rate refunds | (500 | ) | — | |||||
Contributions to pension plans | (650 | ) | — | |||||
Depreciation, depletion and amortization | 1,258 | 1,319 | ||||||
Deferred income taxes and investment tax credits, net | 682 | (494 | ) | |||||
Other | 120 | 408 | ||||||
Net cash provided by operating activities | 1,825 | 3,786 | ||||||
Investing Activities | ||||||||
Plant construction and other property additions | (3,384 | ) | (3,665 | ) | ||||
Additions to gas and oil properties | (38 | ) | (172 | ) | ||||
Proceeds from sale of Appalachian E&P operations | 3,450 | — | ||||||
Proceeds from sale of Peoples | 741 | — | ||||||
Other | (350 | ) | 142 | |||||
Net cash provided by (used in) investing activities | 419 | (3,695 | ) | |||||
Financing Activities | ||||||||
Issuance (repayment) of short-term debt, net | 91 | (735 | ) | |||||
Issuance of long-term debt | 755 | 1,695 | ||||||
Repayment of long-term debt | (1,157 | ) | (447 | ) | ||||
Issuance of common stock | 74 | 456 | ||||||
Repurchase of common stock | (900 | ) | - | |||||
Common dividend payments | (1,076 | ) | (1,039 | ) | ||||
Other | (19 | ) | (42 | ) | ||||
Net cash used in financing activities | (2,232 | ) | (112 | ) | ||||
Decrease in cash and cash equivalents | 12 | (21 | ) | |||||
Cash and cash equivalents at beginning of period | 50 | 71 | ||||||
Cash and cash equivalents at end of period | $ | 62 | $ | 50 | ||||
| * | The notes contained in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements. |
| February 14, 2011 | 14 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Segment Operating Earnings Results
Dominion Consolidated1
Unaudited Summary of Operating Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (millions, except per share amounts) | (millions, except per share amounts) | |||||||||||||||
Operating Revenue | $ | 3,753 | $ | 3,617 | $ | 15,165 | $ | 15,242 | ||||||||
Operating Expenses | ||||||||||||||||
Electric fuel and other energy-related purchases | 986 | 945 | 4,150 | 4,155 | ||||||||||||
Purchased electric capacity | 120 | 102 | 453 | 411 | ||||||||||||
Purchased gas | 500 | 561 | 2,045 | 2,200 | ||||||||||||
Other operations and maintenance | 983 | 937 | 3,164 | 3,208 | ||||||||||||
Depreciation, depletion and amortization | 261 | 290 | 1,055 | 1,119 | ||||||||||||
Other taxes | 128 | 117 | 521 | 483 | ||||||||||||
Total operating expenses | 2,978 | 2,952 | 11,388 | 11,576 | ||||||||||||
Income from operations | 775 | 665 | 3,777 | 3,666 | ||||||||||||
Other income | 47 | 55 | 199 | 221 | ||||||||||||
Income including noncontrolling interests before interest and income taxes | 822 | 720 | 3,976 | 3,887 | ||||||||||||
Interest and related charges | 232 | 233 | 832 | 889 | ||||||||||||
Income including noncontrolling interests before income taxes | 590 | 487 | 3,144 | 2,998 | ||||||||||||
Income taxes | 219 | 108 | 1,156 | 1,039 | ||||||||||||
Income including noncontrolling interests | 371 | 379 | 1,988 | 1,959 | ||||||||||||
Noncontrolling interests | 5 | 5 | 17 | 17 | ||||||||||||
Operating Earnings | $ | 366 | $ | 374 | $ | 1,971 | $ | 1,942 | ||||||||
Operating Earnings Per Share | $ | 0.63 | $ | 0.63 | $ | 3.34 | $ | 3.27 | ||||||||
Items excluded from operating earnings (net of taxes)2 | (68 | ) | (383 | ) | 837 | (655 | ) | |||||||||
Reported Earnings | $ | 298 | $ | (9 | ) | $ | 2,808 | $ | 1,287 | |||||||
Reported Earnings Per Common Share - Diluted | 0.51 | $ | (0.01 | ) | $ | 4.76 | $ | 2.17 | ||||||||
Average shares outstanding, diluted | 582.1 | 598.1 | 590.1 | 593.7 | ||||||||||||
| 1) | Dominion Consolidated Income Statement reflects the impact of segment eliminations and adjustments. |
| 2) | For detail on items excluded from operating earnings see GAAP Reconciliation in this Earnings Release Kit. |
| February 14, 2011 | 15 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion Virginia Power
Unaudited Summary of Operating Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (millions, except per share amounts) | (millions, except per share amounts) | |||||||||||||||
Operating Revenue | $ | 1,000 | $ | 863 | $ | 3,820 | $ | 3,281 | ||||||||
Operating Expenses | ||||||||||||||||
Electric fuel and other energy-related purchases | 254 | 170 | 1,045 | 658 | ||||||||||||
Purchased electric capacity | 12 | — | 16 | — | ||||||||||||
Purchased gas | 208 | 244 | 783 | 869 | ||||||||||||
Other operations and maintenance | 192 | 168 | 679 | 602 | ||||||||||||
Depreciation, depletion and amortization | 90 | 85 | 353 | 341 | ||||||||||||
Other taxes | 30 | 24 | 125 | 99 | ||||||||||||
Total operating expenses | 786 | 691 | 3,001 | 2,569 | ||||||||||||
Income from operations | 214 | 172 | 819 | 712 | ||||||||||||
Other income | 15 | 17 | 72 | 72 | ||||||||||||
Income including noncontrolling interests before interest and income taxes | 229 | 189 | 891 | 784 | ||||||||||||
Interest and related charges | 42 | 39 | 158 | 159 | ||||||||||||
Income including noncontrolling interests before income taxes | 187 | 150 | 733 | 625 | ||||||||||||
Income taxes | 70 | 56 | 277 | 233 | ||||||||||||
Income including noncontrolling interests | 117 | 94 | 456 | 392 | ||||||||||||
Noncontrolling interests | 2 | 2 | 8 | 8 | ||||||||||||
Operating Earnings Contribution | $ | 115 | $ | 92 | $ | 448 | $ | 384 | ||||||||
Operating Earnings Per Share Contribution | $ | 0.20 | $ | 0.15 | $ | 0.76 | $ | 0.65 | ||||||||
Average shares outstanding, diluted | 582.1 | 598.1 | 590.1 | 593.7 | ||||||||||||
| February 14, 2011 | 16 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion Energy
Unaudited Summary of Operating Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (millions, except per share amounts) | (millions, except per share amounts) | |||||||||||||||
Operating Revenue | $ | 928 | $ | 962 | $ | 3,501 | $ | 3,810 | ||||||||
Operating Expenses | ||||||||||||||||
Electric fuel and other energy-related purchases | 4 | 1 | 14 | 25 | ||||||||||||
Purchased electric capacity | — | — | — | — | ||||||||||||
Purchased gas | 372 | 398 | 1,535 | 1,708 | ||||||||||||
Other operations and maintenance | 245 | 209 | 747 | 735 | ||||||||||||
Depreciation, depletion and amortization | 49 | 64 | 210 | 258 | ||||||||||||
Other taxes | 48 | 46 | 173 | 175 | ||||||||||||
Total operating expenses | 718 | 718 | 2,679 | 2,901 | ||||||||||||
| �� | ||||||||||||||||
Income from operations | 210 | 244 | 822 | 909 | ||||||||||||
Other income | 10 | 6 | 40 | 40 | ||||||||||||
Income including noncontrolling interests before interest and income taxes | 220 | 250 | 862 | 949 | ||||||||||||
Interest and related charges | 18 | 28 | 85 | 113 | ||||||||||||
Income including noncontrolling interests before income taxes | 202 | 222 | 777 | 836 | ||||||||||||
Income taxes | 80 | 77 | 302 | 319 | ||||||||||||
Income including noncontrolling interests | 122 | 145 | 475 | 517 | ||||||||||||
Noncontrolling interests | — | — | — | — | ||||||||||||
Operating Earnings Contribution | $ | 122 | $ | 145 | $ | 475 | $ | 517 | ||||||||
Operating Earnings Per Share Contribution | $ | 0.21 | $ | 0.25 | $ | 0.80 | $ | 0.87 | ||||||||
Average shares outstanding, diluted | 582.1 | 598.1 | 590.1 | 593.7 | ||||||||||||
| February 14, 2011 | 17 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion Generation
Unaudited Summary of Operating Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (millions, except per share amounts) | (millions, except per share amounts) | |||||||||||||||
Operating Revenue | $ | 1,973 | $ | 1,933 | $ | 8,418 | $ | 8,751 | ||||||||
Operating Expenses | ||||||||||||||||
Electric fuel and other energy-related purchases | 775 | 815 | 3,308 | 3,627 | ||||||||||||
Purchased electric capacity | 107 | 102 | 437 | 411 | ||||||||||||
Purchased gas | — | — | — | — | ||||||||||||
Other operations and maintenance | 579 | 577 | 1,842 | 1,936 | ||||||||||||
Depreciation, depletion and amortization | 115 | 134 | 462 | 492 | ||||||||||||
Other taxes | 43 | 42 | 188 | 179 | ||||||||||||
Total operating expenses | 1,619 | 1,670 | 6,237 | 6,645 | ||||||||||||
Income from operations | 354 | 263 | 2,181 | 2,106 | ||||||||||||
Other income | 21 | 20 | 75 | 79 | ||||||||||||
Income including noncontrolling interests before interest and income taxes | 375 | 283 | 2,256 | 2,185 | ||||||||||||
Interest and related charges | 49 | 48 | 185 | 201 | ||||||||||||
Income including noncontrolling interests before income taxes | 326 | 235 | 2,071 | 1,984 | ||||||||||||
Income taxes | 120 | 49 | 771 | 694 | ||||||||||||
Income including noncontrolling interests | 206 | 186 | 1,300 | 1,290 | ||||||||||||
Noncontrolling interests | 3 | 3 | 9 | 9 | ||||||||||||
Operating Earnings Contribution | $ | 203 | $ | 183 | $ | 1,291 | $ | 1,281 | ||||||||
Operating Earnings Per Share Contribution | $ | 0.35 | $ | 0.31 | $ | 2.19 | $ | 2.16 | ||||||||
Average shares outstanding, diluted | 582.1 | 598.1 | 590.1 | 593.7 | ||||||||||||
| February 14, 2011 | 18 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Corporate and Other
Unaudited Summary of Operating Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (millions, except per share amounts) | (millions, except per share amounts) | |||||||||||||||
Operating Revenue | $ | 177 | $ | 182 | $ | 737 | $ | 683 | ||||||||
| �� | ||||||||||||||||
Operating Expenses | ||||||||||||||||
Electric fuel and other energy-related purchases | — | — | — | — | ||||||||||||
Purchased electric capacity | — | — | — | — | ||||||||||||
Purchased gas | 1 | 1 | 6 | 4 | ||||||||||||
Other operations and maintenance | 164 | 181 | 711 | 681 | ||||||||||||
Depreciation, depletion and amortization | 7 | 8 | 30 | 29 | ||||||||||||
Other taxes | 8 | 6 | 35 | 30 | ||||||||||||
Total operating expenses | 180 | 196 | 782 | 744 | ||||||||||||
Income (loss) from operations | (3 | ) | (14 | ) | (45 | ) | (61 | ) | ||||||||
Other income | 19 | 39 | 102 | 147 | ||||||||||||
Income including noncontrolling interests before interest and income taxes | 16 | 25 | 57 | 86 | ||||||||||||
Interest and related charges | 141 | 145 | 494 | 533 | ||||||||||||
Income including noncontrolling interests before income taxes | (125 | ) | (120 | ) | (437 | ) | (447 | ) | ||||||||
Income taxes | (51 | ) | (74 | ) | (194 | ) | (207 | ) | ||||||||
Income including noncontrolling interests | (74 | ) | (46 | ) | (243 | ) | (240 | ) | ||||||||
Noncontrolling interests | — | — | — | — | ||||||||||||
Operating Earnings (Loss) Contribution | $ | (74 | ) | $ | (46 | ) | $ | (243 | ) | $ | (240 | ) | ||||
Operating Earnings (Loss) Per Share Contribution | $ | (0.13 | ) | $ | (0.08 | ) | $ | (0.41 | ) | $ | (0.41 | ) | ||||
Items excluded from operating earnings (net of taxes)1 | (68 | ) | (383 | ) | 837 | (655 | ) | |||||||||
Reported Earnings | $ | (142 | ) | $ | (429 | ) | $ | 594 | $ | (895 | ) | |||||
Reported Earnings Per Common Share - Diluted | $ | (0.25 | ) | $ | (0.72 | ) | $ | 1.01 | $ | (1.51 | ) | |||||
Average shares outstanding, diluted | 582.1 | 598.1 | 590.1 | 593.7 | ||||||||||||
| 1) | For detail on items excluded from operating earnings see GAAP Reconciliation in this Earnings Release Kit. |
| February 14, 2011 | 19 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion
Unaudited Operating Revenue Detail (GAAP Based)
(millions)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 20091 | 2010 | 20091 | |||||||||||||
Dominion Consolidated | ||||||||||||||||
Operating Revenue | ||||||||||||||||
Electric sales: | ||||||||||||||||
Regulated | $ | 1,635 | $ | 1,100 | $ | 7,123 | $ | 6,477 | ||||||||
Nonregulated | 972 | 885 | 3,829 | 3,802 | ||||||||||||
Gas sales: | ||||||||||||||||
Regulated | 99 | 91 | 308 | 494 | ||||||||||||
Nonregulated | 508 | 644 | 2,010 | 2,315 | ||||||||||||
Gas transportation and storage | 423 | 344 | 1,493 | 1,268 | ||||||||||||
Other | 109 | 112 | 434 | 442 | ||||||||||||
Total operating revenue | $ | 3,746 | $ | 3,176 | $ | 15,197 | $ | 14,798 | ||||||||
Dominion Virginia Power | ||||||||||||||||
Operating Revenue | ||||||||||||||||
Electric sales: | ||||||||||||||||
Regulated | $ | 415 | $ | 346 | $ | 1,628 | $ | 1,413 | ||||||||
Nonregulated | 294 | 205 | 1,203 | 781 | ||||||||||||
Gas sales: | ||||||||||||||||
Regulated | — | — | — | — | ||||||||||||
Nonregulated | 247 | 276 | 830 | 942 | ||||||||||||
Gas transportation and storage | 2 | 2 | 5 | 6 | ||||||||||||
Other | 42 | 34 | 154 | 139 | ||||||||||||
Total operating revenue | $ | 1,000 | $ | 863 | $ | 3,820 | $ | 3,281 | ||||||||
Dominion Energy | ||||||||||||||||
Operating Revenue | ||||||||||||||||
Electric sales: | ||||||||||||||||
Regulated | $ | — | $ | — | $ | — | $ | — | ||||||||
Nonregulated | — | — | — | — | ||||||||||||
Gas sales: | ||||||||||||||||
Regulated | 99 | 91 | 308 | 494 | ||||||||||||
Nonregulated | 327 | 439 | 1,375 | 1,715 | ||||||||||||
Gas transportation and storage | 428 | 350 | 1,516 | 1,291 | ||||||||||||
Other | 74 | 82 | 302 | 310 | ||||||||||||
Total operating revenue | $ | 928 | $ | 962 | $ | 3,501 | $ | 3,810 | ||||||||
Dominion Generation | ||||||||||||||||
Operating Revenue | ||||||||||||||||
Electric sales: | ||||||||||||||||
Regulated | $ | 1,227 | $ | 1,195 | $ | 5,502 | $ | 5,505 | ||||||||
Nonregulated | 728 | 723 | 2,852 | 3,183 | ||||||||||||
Gas sales: | ||||||||||||||||
Regulated | — | — | — | — | ||||||||||||
Nonregulated | 4 | 1 | 1 | 1 | ||||||||||||
Gas transportation and storage | — | — | — | — | ||||||||||||
Other | 14 | 14 | 63 | 62 | ||||||||||||
Total operating revenue | $ | 1,973 | $ | 1,933 | $ | 8,418 | $ | 8,751 | ||||||||
Corporate and Other | ||||||||||||||||
Operating Revenue | ||||||||||||||||
Electric sales: | ||||||||||||||||
Regulated | $ | (7 | ) | $ | (441 | ) | $ | (7 | ) | $ | (441 | ) | ||||
Nonregulated | — | — | — | — | ||||||||||||
Gas sales: | ||||||||||||||||
Regulated | — | — | — | — | ||||||||||||
Nonregulated | 1 | 1 | 43 | 1 | ||||||||||||
Gas transportation and storage | — | — | — | — | ||||||||||||
Other | 176 | 181 | 733 | 679 | ||||||||||||
Total operating revenue | $ | 170 | $ | (259 | ) | $ | 769 | $ | 239 | |||||||
| 1) | 2009 amounts have been recast due to the reclassification of Peoples’ results to discontinued operations. |
| February 14, 2011 | 20 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Operating Statistics
| Dominion | Three Months Ended | Year Ended | ||||||||||||||
| Operating Statistics | December 31, | December 31, | ||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Dominion Consolidated | ||||||||||||||||
Regulated Electric Sales Revenue ($ millions) | ||||||||||||||||
Residential | $ | 713 | $ | 698 | $ | 3,277 | $ | 3,156 | ||||||||
Commercial | 524 | 549 | 2,209 | 2,306 | ||||||||||||
Industrial | 121 | 132 | 502 | 559 | ||||||||||||
Governmental | 201 | 177 | 806 | 720 | ||||||||||||
Regulated retail revenue | 1,560 | 1,555 | 6,795 | 6,741 | ||||||||||||
Wholesale - sales for resale | 42 | 53 | 178 | 181 | ||||||||||||
Other revenue1 | 34 | (508 | ) | 152 | (445 | ) | ||||||||||
Total | $ | 1,635 | $ | 1,100 | $ | 7,123 | $ | 6,477 | ||||||||
Dominion Virginia Power | ||||||||||||||||
Degree Days (Electric service area) | ||||||||||||||||
Cooling | ||||||||||||||||
Actual | 49 | 26 | 2,090 | 1,477 | ||||||||||||
Normal | 46 | 45 | 1,546 | 1,545 | ||||||||||||
Heating | ||||||||||||||||
Actual | 1,496 | 1,285 | 3,819 | 3,747 | ||||||||||||
Normal | 1,317 | 1,317 | 3,638 | 3,638 | ||||||||||||
Electric Delivery Customers (at period end) | ||||||||||||||||
Residential | 2,167,249 | 2,149,288 | 2,167,249 | 2,149,288 | ||||||||||||
Commercial | 233,325 | 232,656 | 233,325 | 232,656 | ||||||||||||
Industrial | 546 | 576 | 546 | 576 | ||||||||||||
Governmental | 31,934 | 31,870 | 31,934 | 31,870 | ||||||||||||
Total Retail | 2,433,054 | 2,414,390 | 2,433,054 | 2,414,390 | ||||||||||||
Wholesale - sales for resale | 5 | 5 | 5 | 5 | ||||||||||||
Total | 2,433,059 | 2,414,395 | 2,433,059 | 2,414,395 | ||||||||||||
Electricity Delivered (GWh) | ||||||||||||||||
Residential | 7,295 | 6,778 | 32,539 | 29,920 | ||||||||||||
Commercial | 6,925 | 6,886 | 29,224 | 28,463 | ||||||||||||
Industrial | 2,060 | 2,124 | 8,512 | 8,644 | ||||||||||||
Governmental | 2,645 | 2,610 | 10,951 | 10,727 | ||||||||||||
Total Retail | 18,925 | 18,397 | 81,226 | 77,755 | ||||||||||||
Wholesale - sales for resale | 840 | 882 | 3,311 | 3,620 | ||||||||||||
Total | 19,765 | 19,279 | 84,537 | 81,374 | ||||||||||||
Dominion Retail | ||||||||||||||||
Unregulated Energy Customer Accounts (Average) | ||||||||||||||||
Natural Gas | 564,464 | 617,397 | 583,276 | 631,054 | ||||||||||||
Electric | 766,304 | 483,473 | 725,207 | 430,285 | ||||||||||||
Products and Services | 764,629 | 674,347 | 728,963 | 656,484 | ||||||||||||
Total | 2,095,397 | 1,775,217 | 2,037,446 | 1,717,823 | ||||||||||||
Volumes Sold | ||||||||||||||||
Natural Gas (mmcf) | 30,080 | 29,563 | 96,797 | 100,620 | ||||||||||||
Electricity (MWh) | 3,212,379 | 2,153,717 | 12,979,892 | 7,855,669 | ||||||||||||
| 1) | 4Q09 and full year 2009 amounts include a $523 million charge associated with the settlement of Virginia Power’s 2009 rate case proceeding. |
Note: Figures may not add due to rounding
| February 14, 2011 | 21 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
| Dominion | Three Months Ended | Year Ended | ||||||||||||||
| Operating Statistics | December 31, | December 31, | ||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Dominion Energy - Gas Distribution | ||||||||||||||||
Regulated Gas Revenue ($mm) | ||||||||||||||||
Gas sales revenue | ||||||||||||||||
Residential | $ | 85 | $ | 79 | $ | 265 | $ | 396 | ||||||||
Commercial | 12 | 11 | 37 | 88 | ||||||||||||
Industrial | 1 | 1 | 3 | 6 | ||||||||||||
Other | 1 | 1 | 3 | 4 | ||||||||||||
Total | $ | 99 | $ | 91 | $ | 308 | $ | 494 | ||||||||
Regulated Gas Transportation and Storage Revenue ($mm) | ||||||||||||||||
Gas transportation revenue | ||||||||||||||||
Residential | $ | 135 | $ | 106 | $ | 422 | $ | 374 | ||||||||
Commercial | 53 | 33 | 141 | 123 | ||||||||||||
Industrial | 15 | 12 | 53 | 45 | ||||||||||||
Other | 1 | — | 2 | 1 | ||||||||||||
Total transportation revenue | 204 | 152 | 619 | 544 | ||||||||||||
Storage revenue | 5 | 3 | 15 | 12 | ||||||||||||
Total | $ | 209 | $ | 154 | $ | 633 | $ | 555 | ||||||||
Degree Days | ||||||||||||||||
Heating | ||||||||||||||||
Actual | 2,221 | 2,019 | 5,682 | 5,847 | ||||||||||||
Normal | 2,017 | 2,012 | 5,734 | 5,711 | ||||||||||||
LDC Natural Gas Customers (Average) | ||||||||||||||||
Gas sales customers | ||||||||||||||||
Residential | 250,212 | 253,563 | 248,932 | 304,096 | ||||||||||||
Commercial | 11,189 | 11,237 | 10,550 | 16,274 | ||||||||||||
Industrial | 30 | 34 | 29 | 141 | ||||||||||||
Other | 23 | 24 | 23 | 24 | ||||||||||||
Total | 261,454 | 264,858 | 259,534 | 320,535 | ||||||||||||
Gas transportation customers | ||||||||||||||||
Residential | 952,929 | 957,206 | 960,375 | 912,380 | ||||||||||||
Commercial | 79,892 | 78,927 | 79,687 | 74,220 | ||||||||||||
Industrial | 1,573 | 1,562 | 1,571 | 1,471 | ||||||||||||
Total | 1,034,394 | 1,037,695 | 1,041,633 | 988,071 | ||||||||||||
Total LDC natural gas customers | ||||||||||||||||
Residential | 1,203,141 | 1,210,769 | 1,209,307 | 1,216,476 | ||||||||||||
Commercial | 91,081 | 90,164 | 90,237 | 90,494 | ||||||||||||
Industrial | 1,603 | 1,596 | 1,600 | 1,612 | ||||||||||||
Other | 23 | 24 | 23 | 24 | ||||||||||||
Total | 1,295,848 | 1,302,553 | 1,301,167 | 1,308,606 | ||||||||||||
LDC Natural Gas Delivery (mmcf) | ||||||||||||||||
Gas sales volume | ||||||||||||||||
Residential | 8,963 | 8,179 | 25,754 | 34,056 | ||||||||||||
Commercial | 1,437 | 1,188 | 4,211 | 7,705 | ||||||||||||
Industrial | 118 | 84 | 416 | 658 | ||||||||||||
Other | 122 | 104 | 480 | 349 | ||||||||||||
Total | 10,640 | 9,555 | 30,861 | 42,768 | ||||||||||||
Gas transportation volume | ||||||||||||||||
Residential | 30,996 | 29,464 | 92,571 | 87,022 | ||||||||||||
Commercial | 16,372 | 14,982 | 49,962 | 47,450 | ||||||||||||
Industrial | 24,286 | 20,939 | 93,689 | 70,324 | ||||||||||||
Other | 1,210 | 846 | 4,394 | 3,574 | ||||||||||||
Total | 72,864 | 66,231 | 240,616 | 208,370 | ||||||||||||
Total LDC natural gas throughput | ||||||||||||||||
Residential | 39,959 | 37,643 | 118,325 | 121,078 | ||||||||||||
Commercial | 17,809 | 16,170 | 54,173 | 55,155 | ||||||||||||
Industrial | 24,404 | 21,023 | 94,105 | 70,982 | ||||||||||||
Other | 1,332 | 950 | 4,874 | 3,923 | ||||||||||||
Total | 83,504 | 75,786 | 271,477 | 251,138 | ||||||||||||
Dominion Energy - Gas Transmission | ||||||||||||||||
Natural Gas Liquids sales (million gallons) | 41.2 | 43.2 | 163.1 | 162.1 | ||||||||||||
Average Realized NGL Price with Hedging ($/gal) | $ | 1.42 | $ | 1.42 | $ | 1.38 | $ | 1.34 | ||||||||
Gas Shrinkage Cost ($mm) | $ | 16.7 | $ | 19.7 | $ | 72.6 | $ | 72.0 | ||||||||
Note: Figures may not add due to rounding
| February 14, 2011 | 22 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
| Dominion | Three Months Ended | Year Ended | ||||||||||||||
| Operating Statistics | December 31, | December 31, | ||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Dominion Generation | ||||||||||||||||
Regulated Generation | ||||||||||||||||
Electricity Sold (GWh) to VP/NCP customers | ||||||||||||||||
Residential | 7,295 | 6,778 | 32,539 | 29,919 | ||||||||||||
Commercial | 6,925 | 6,886 | 29,224 | 28,463 | ||||||||||||
Industrial | 2,060 | 2,124 | 8,512 | 8,644 | ||||||||||||
Governmental | 2,645 | 2,610 | 10,951 | 10,727 | ||||||||||||
Total Retail | 18,925 | 18,397 | 81,226 | 77,754 | ||||||||||||
Wholesale - sales for resale | 840 | 882 | 3,311 | 3,620 | ||||||||||||
Total | 19,765 | 19,279 | 84,537 | 81,374 | ||||||||||||
Merchant Generation | ||||||||||||||||
NEPOOL Merchant Fleet1 | ||||||||||||||||
Baseload Electric Sales (GWh) | 5,914 | 5,241 | 24,033 | 24,499 | ||||||||||||
Other Electric Sales (GWh) | 512 | 507 | 1,986 | 1,819 | ||||||||||||
Total Electric Sales (GWh) | 6,426 | 5,748 | 26,019 | 26,318 | ||||||||||||
PJM Merchant Fleet2 | ||||||||||||||||
Baseload Electric Sales (GWh) | 804 | 718 | 3,356 | 2,766 | ||||||||||||
Other Electric Sales (GWh) | 1,359 | 1,429 | 5,549 | 6,532 | ||||||||||||
Total Electric Sales (GWh) | 2,163 | 2,147 | 8,905 | 9,298 | ||||||||||||
| 1) | Baseload Electric Sales include Millstone and the coal units at Brayton Point and Salem Harbor. Other Electric Sales include Manchester generating station and the oil units at Brayton Point and Salem Habor. |
| 2) | Baseload Electric Sales include the State Line generating station. Other Electric Sales includes the Fairless generating station. |
Note: Figures may not add due to rounding
| February 14, 2011 | 23 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule of Long-Term Debt
Dominion Resources, Inc. & Subsidiaries
Schedule of Long-Term Debt - Preliminary & Unaudited
($ in Millions)
| At 12/31 | At 3/31 | At 6/30 | At 9/30 | At 12/31 | ||||||||||||||||
| 2009 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Dominion Resources, Inc. | ||||||||||||||||||||
Unsecured Senior Notes: | ||||||||||||||||||||
2.25% to 8.125%, due 2010 to 2015 | $ | 2,029 | $ | 2,029 | $ | 1,952 | $ | 2,202 | $ | 1,901 | ||||||||||
5.2% to 8.875%, due 2016 to 2038 | $ | 4,193 | $ | 4,193 | $ | 4,193 | $ | 4,193 | $ | 4,193 | ||||||||||
Variable rate, due 2010 | $ | 300 | $ | 300 | $ | — | $ | — | $ | — | ||||||||||
Unsecured Debentures and Senior Notes (previously issued by CNG): | ||||||||||||||||||||
5.0% to 6.85%, due 2010 to 2014 | $ | 1,291 | $ | 1,291 | $ | 1,291 | $ | 1,291 | $ | 1,091 | ||||||||||
6.8% and 6.875%, due 2026 and 2027 | $ | 89 | $ | 89 | $ | 89 | $ | 89 | $ | 89 | ||||||||||
Unsecured Convertible Senior Notes, 2.125%, due 2023 | $ | 202 | $ | 202 | $ | 202 | $ | 202 | $ | 202 | ||||||||||
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts, 7.83% and 8.4%, due 2027 and 2031 | $ | 268 | $ | 268 | $ | 268 | $ | 268 | $ | 268 | ||||||||||
Enhanced Junior Subordinated Notes, 6.3% to 8.375%, due 2064 and 20661 | $ | 1,485 | $ | 1,485 | $ | 1,469 | $ | 1,469 | $ | 1,469 | ||||||||||
Virginia Electric and Power Company | ||||||||||||||||||||
Unsecured Senior Notes: | ||||||||||||||||||||
4.5% to 5.25%, due 2010 to 2015 | $ | 1,430 | $ | 1,430 | $ | 1,430 | $ | 1,430 | $ | 1,200 | ||||||||||
3.45% to 8.875%, due 2016 to 2038 | $ | 4,408 | $ | 4,407 | $ | 4,401 | $ | 4,699 | $ | 4,694 | ||||||||||
Tax-Exempt Financings: | ||||||||||||||||||||
Variable rates, due 2016 to 20412 | $ | 119 | $ | 119 | $ | 119 | $ | 119 | $ | 219 | ||||||||||
7.65%, due 2010 | $ | 1 | $ | — | $ | — | $ | — | $ | — | ||||||||||
1.375% to 6.5%, due 2017 to 2040 | $ | 503 | $ | 503 | $ | 503 | $ | 503 | $ | 608 | ||||||||||
Dominion Energy, Inc. | ||||||||||||||||||||
Secured Senior Note, 7.33%, due 2020 | $ | 183 | $ | 183 | $ | 177 | $ | 177 | $ | 171 | ||||||||||
Tax-Exempt Financings, 5.0% and 5.75%, due 2033 to 20423 | $ | 124 | $ | 124 | $ | 124 | $ | 124 | $ | 124 | ||||||||||
Total Principal Amount | $ | 16,625 | $ | 16,623 | $ | 16,218 | $ | 16,766 | $ | 16,229 | ||||||||||
Fair Value Hedge Valuation | 23 | 24 | 54 | 59 | 49 | |||||||||||||||
Amounts Due Within One Year | (1,137 | ) | (1,254 | ) | (895 | ) | (776 | ) | (497 | ) | ||||||||||
Unamortized Discount & Premium, net | (30 | ) | (29 | ) | (28 | ) | (26 | ) | (23 | ) | ||||||||||
Total Long-Term Debt | $ | 15,481 | $ | 15,364 | $ | 15,349 | $ | 16,023 | $ | 15,758 | ||||||||||
| 1) | $16 million of the $500 million 6.3% 2006 Series B Enhanced Junior Subordinated Notes due 2066 were purchased and cancelled in April 2010. |
| 2) | $160 million of tax-exempt bonds due in 2040 issued by the IDA of Wise County on behalf of VEPCO in December 2010 ($60 million of which were issued in September 2009) are not included upon consolidation because the bonds have been temporarily purchased and are held by VEPCO. |
| 3) | $235 million of tax-exempt bonds due in 2041 issued by Massachusetts Development Finance Agency on behalf of Dominion Brayton Point, LLC in December 2010 are not included upon consolidation because the bonds have been temporarily purchased and are held by DRI. |
| February 14, 2011 | 24 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule of Debt Maturity
Dominion Resources, Inc. & Subsidiaries
2011 - 2015 Schedule of Debt Maturities as of December 31, 2010
($ in Millions)
| Due Date | DRI | VEPCO | Other | Total | ||||||||||||||||
2011 | ||||||||||||||||||||
6.85% 2001 Series A Senior Notes (from CNG Merger) | 04/15/11 | 18.9 | — | — | 18.9 | |||||||||||||||
6.25% 2001 Series C Senior Notes (from CNG Merger) | 11/01/11 | 450.0 | — | — | 450.0 | |||||||||||||||
7.25% Mecklenburg Senior Bonds | multiple | — | 9.6 | — | 9.6 | |||||||||||||||
8.625% Panda-Rosemary Senior Notes | multiple | — | 5.4 | — | 5.4 | |||||||||||||||
7.33% Senior Secured Bonds | multiple | — | — | 12.5 | 12.5 | |||||||||||||||
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes | multiple | — | 0.2 | — | 0.2 | |||||||||||||||
Total 2011 | 468.9 | 15.2 | 12.5 | 496.6 | ||||||||||||||||
2012 | ||||||||||||||||||||
6.25% 2002 Series B Senior Notes | 06/30/12 | 334.3 | — | — | 334.3 | |||||||||||||||
5.7% 2002 Series C Senior Notes | 09/17/12 | 520.0 | — | — | 520.0 | |||||||||||||||
5.1% 2007 Series C Senior Notes | 11/30/12 | — | 600.0 | — | 600.0 | |||||||||||||||
7.25% Mecklenburg Senior Bonds | multiple | — | 9.8 | — | 9.8 | |||||||||||||||
8.625% Panda-Rosemary Senior Notes | multiple | — | 5.6 | — | 5.6 | |||||||||||||||
7.33% Senior Secured Bonds | multiple | — | — | 13.4 | 13.4 | |||||||||||||||
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes | multiple | — | 0.2 | — | 0.2 | |||||||||||||||
Total 2012 | 854.3 | 615.6 | 13.4 | 1,483.3 | ||||||||||||||||
2013 | ||||||||||||||||||||
4.75% 2003 Series A Senior Notes | 03/01/13 | — | 400.0 | — | 400.0 | |||||||||||||||
5.0% 2003 Series D Senior Notes | 03/15/13 | 250.0 | — | — | 250.0 | |||||||||||||||
6.625% 1993 Series B Debentures (from CNG Merger) | 12/01/13 | 22.0 | — | — | 22.0 | |||||||||||||||
7.25% Mecklenburg Senior Bonds | multiple | — | 11.6 | — | 11.6 | |||||||||||||||
8.625% Panda-Rosemary Senior Notes | multiple | — | 5.9 | — | 5.9 | |||||||||||||||
7.33% Senior Secured Bonds | multiple | — | — | 10.9 | 10.9 | |||||||||||||||
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes | multiple | — | 0.2 | — | 0.2 | |||||||||||||||
Total 2013 | 272.0 | 417.7 | 10.9 | 700.6 | ||||||||||||||||
2014 | ||||||||||||||||||||
5.0% 2003 Series A Senior Notes (from CNG Merger) | 03/01/14 | 200.0 | — | — | 200.0 | |||||||||||||||
7.195% Remarketed 2000 Series E Senior Notes | 09/15/14 | 47.3 | — | — | 47.3 | |||||||||||||||
5.0% 2004 Series A Senior Notes (from CNG Merger) | 12/01/14 | 400.0 | — | — | 400.0 | |||||||||||||||
7.25% Mecklenburg Senior Bonds | multiple | — | 11.2 | — | 11.2 | |||||||||||||||
8.625% Panda-Rosemary Senior Notes | multiple | — | 6.1 | — | 6.1 | |||||||||||||||
7.33% Senior Secured Bonds | multiple | — | — | 14.9 | 14.9 | |||||||||||||||
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes | multiple | — | 0.3 | — | 0.3 | |||||||||||||||
Total 2014 | 647.3 | 17.6 | 14.9 | 679.8 | ||||||||||||||||
2015 | ||||||||||||||||||||
5.15% 2005 Series C Senior Notes | 07/15/15 | 500.0 | — | — | 500.0 | |||||||||||||||
2.25% 2010 Series A Senior Notes | 09/01/15 | 250.0 | — | — | 250.0 | |||||||||||||||
5.25% 2003 Series C Senior Notes | 12/15/15 | — | 200.0 | — | 200.0 | |||||||||||||||
6.5% 2002 Series IDA Mecklenburg Exempt Facility Rev Bonds | multiple | — | 8.2 | — | 8.2 | |||||||||||||||
8.625% Panda-Rosemary Senior Notes | multiple | — | 6.0 | — | 6.0 | |||||||||||||||
7.25% Mecklenburg Senior Bonds | multiple | — | 4.2 | — | 4.2 | |||||||||||||||
7.33% Senior Secured Bonds | multiple | — | — | 17.7 | 17.7 | |||||||||||||||
7.25% Ft Story, Ft Eustis, Ft Lee and Ft Monroe Promissory Notes | multiple | — | 0.3 | — | 0.3 | |||||||||||||||
Total 2015 | 750.0 | 218.7 | 17.7 | 986.4 | ||||||||||||||||
Total 5-year Debt Maturities | $ | 2,992.5 | $ | 1,284.8 | $ | 69.4 | $ | 4,346.7 | ||||||||||||
| February 14, 2011 | 25 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Schedule of Change in Capitalization
Dominion Resources, Inc & Subsidiaries
Summary of Changes in Capitalization From December 31, 2009 to December 31, 2010
(Preliminary and Unaudited)
($ in Millions)
Change in Debt (Long-Term Debt plus Securities Due Within One Year) |
| |||||||||||
Balance as of December 31, 2009 | $ | 16,618 | ||||||||||
Issuances: | ||||||||||||
VEPCO 2010 Series A 3.45% Senior Notes due 2022 | 300 | |||||||||||
DRI 2010 Series A 2.25% Senior Notes due 2015 | 250 | |||||||||||
VEPCO IDA of Wise County 2.375% Series 2010 A due 2040 | 105 | |||||||||||
VEPCO IDA of Halifax County (variable) Series 2010 A due 2041 | 100 | |||||||||||
| 755 | 1, 2 | |||||||||||
Maturities: | ||||||||||||
DRI 2008 Series C Floating Rate Senior Notes due 2010 | (300 | ) | ||||||||||
DRI 2005 Series A 4.75% Senior Notes due 2010 | (300 | ) | ||||||||||
VEPCO 2003 Series B 4.5% Senior Notes due 2010 | (230 | ) | ||||||||||
DRI 1998 Series A 6% Debentures due 2010 (from CNG merger) | (200 | ) | ||||||||||
DRI 2000 Series A 8.125% Senior Notes due 2010 | (77 | ) | ||||||||||
DRI 2006 Series B 6.3% Enhanced Jr Subordinated Notes due 20663 | (16 | ) | ||||||||||
Other | (28 | ) | ||||||||||
| (1,151 | ) | |||||||||||
Change in Fair Value Hedges and Net Discount/Premium | — | |||||||||||
Change in Fair Value Hedges and Net Discount/Premium | 33 | |||||||||||
| 33 | ||||||||||||
Balance as of December 31, 2010 | $ | 16,255 | ||||||||||
Change in Shareholders’ Equity | ||||||||||||
Balance as of December 31, 2009 | $ | 11,185 | ||||||||||
Issuance and Repurchase of Stock, Net | (810 | ) | ||||||||||
Change in Other Paid-in Capital | 9 | |||||||||||
Changes in AOCI: | ||||||||||||
Net Other Comprehensive Gain (Loss) associated with effective portion of changes in fair value of derivatives designated as cash flow hedges, net of taxes and amounts reclassified to earnings: | ||||||||||||
Interest Rate | (70 | ) | ||||||||||
Electricity | (146 | ) | ||||||||||
Gas | 2 | |||||||||||
Other 4 | (16 | ) | ||||||||||
| (230 | ) | |||||||||||
Other changes in Net Other Comprehensive Income5 | 147 | |||||||||||
Net change in AOCI | (83 | ) | ||||||||||
Change in Retained Earnings | 1,732 | |||||||||||
Net change in Shareholders’ Equity | 848 | |||||||||||
Balance as of December 31, 2010 | $ | 12,033 | ||||||||||
| 1) | $235 million of tax-exempt bonds due in 2041 issued by Massachusetts Development Finance Agencyon behalf of Dominion Brayton Point, LLC in December 2010 are not included upon consolidationbecause the bonds have been temporarily purchased and are held by DRI. |
| 2) | $100 million of tax-exempt bonds due in 2040 issued by the IDA of Wise County on behalf of VEPCOin December 2010 are not included upon consolidation because the bonds have been temporarilypurchased and are held by VEPCO. |
| 3) | $16 million of the $500 million 6.3% 2006 Series B Enhanced Junior Subordinated Notes due 2066 werepurchased and cancelled in April 2010. |
| 4) | Other includes capacity, NGL, oil and foreign exchange hedges. |
| 5) | Primarily reflects a net increase in unrealized gains on investments held in nuclear decommissioning trusts. |
| February 14, 2011 | 26 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Forecast And Outlook
Reconciliation of Operating Earnings Guidance
2010
Dominion
2010 Operating Earnings Guidance Summary
(millions, except per share amounts)
| 2009 Actual | Range of Total 2010 | 2010 Actual | ||||||||||||||
Description | Low | High | ||||||||||||||
Operating Earnings before Interest and Taxes: | ||||||||||||||||
Dominion Virginia Power | $ | 784 | $ | 866 | $ | 930 | $ | 891 | ||||||||
Dominion Energy | 949 | 852 | 894 | 862 | ||||||||||||
Dominion Generation | 2,185 | 2,135 | 2,205 | 2,256 | ||||||||||||
Corporate and Other & Eliminations Adjusted EBIT | (32 | ) | (21 | ) | (11 | ) | (33 | ) | ||||||||
Total Adjusted EBIT | 3,887 | 3,833 | 4,019 | 3,976 | ||||||||||||
Consolidated Interest | 889 | 831 | 841 | 832 | ||||||||||||
Consolidated Income Taxes | 1,039 | 1,112 | 1,177 | 1,156 | ||||||||||||
Noncontrolling Interests | 17 | 17 | 17 | 17 | ||||||||||||
Operating Earnings | $ | 1,942 | $ | 1,874 | $ | 1,984 | $ | 1,971 | ||||||||
Average Diluted Shares Outstanding | 593.7 | 586 | 584 | 590.1 | ||||||||||||
Operating EPS Range | $ | 3.27 | $ | 3.20 | $ | 3.40 | $ | 3.34 | ||||||||
2010 Operating EPS Guidance Range |
| $ | 3.20 | $ | 3.40 | |||||||||||
2010 Operating EPS Actual >>> |
| $ | 3.34 | |||||||||||||
Note: Figures may not add due to rounding
| February 14, 2011 | 27 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
4Q10
Dominion
4Q10 Operating Earnings Guidance Summary
(millions, except per share amounts)
| 4Q09 Actual | Range of 4Q10 | 4Q10 Actual | ||||||||||||||
Description | Low | High | ||||||||||||||
Operating Earnings before Interest and Taxes: | ||||||||||||||||
Dominion Virginia Power | $ | 189 | $ | 212 | $ | 242 | $ | 229 | ||||||||
Dominion Energy | 250 | 204 | 220 | 220 | ||||||||||||
Dominion Generation | 283 | 350 | 405 | 375 | ||||||||||||
Corporate and Other & Eliminations Adjusted EBIT | (2 | ) | 13 | 15 | (2 | ) | ||||||||||
Total Adjusted EBIT | 720 | 778 | 881 | 822 | ||||||||||||
Consolidated Interest | 233 | 222 | 212 | 232 | ||||||||||||
Consolidated Income Taxes | 108 | 217 | 261 | 219 | ||||||||||||
Noncontrolling Interests | 5 | 4 | 4 | 5 | ||||||||||||
Operating Earnings | $ | 374 | $ | 335 | $ | 404 | $ | 366 | ||||||||
Average Diluted Shares Outstanding | 598.1 | 583 | 581 | 582.1 | ||||||||||||
Operating EPS Range | $ | 0.63 | $ | 0.58 | $ | 0.70 | $ | 0.63 | ||||||||
4Q10 Operating EPS Guidance Range |
| $ | 0.59 | $ | 0.69 | |||||||||||
4Q10 Operating EPS Actual >>> |
| $ | 0.63 | |||||||||||||
Note: Figures may not add due to rounding
| February 14, 2011 | 28 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Dominion Generation – Non-Contracted Plants EBITDA
Description | 4Q09 Actual | 4Q10 Assumption | 4Q10 Actual | |||||||||
NEPOOL Merchant Fleet1 | ||||||||||||
Baseload Electric Sales (GWh) | 5,241 | 5,566 | 5,914 | |||||||||
Other Electric Sales (GWh) | 507 | 425 | 512 | |||||||||
Total Electric Sales (GWh) | 5,748 | 5,991 | 6,426 | |||||||||
NEPOOL EBITDA ($mm) 1, 3 | $ | 228 | $ | 250 - $265 | $ | 257 | ||||||
PJM Merchant Fleet2 | ||||||||||||
Baseload Electric Sales (GWh) | 718 | 712 | 804 | |||||||||
Other Electric Sales (GWh) | 1,429 | 1,190 | 1,359 | |||||||||
Total Electric Sales (GWh) | 2,147 | 1,902 | 2,163 | |||||||||
PJM EBITDA ($mm)2, 3 | $ | 21 | $25 - $40 | $ | 35 | |||||||
Select Market Price, Volume and Hedging Assumptions: | ||||||||||||
Average Energy Market Price:4 | ||||||||||||
Average Mass Hub/New Eng. Price (7x24) ($/MWh) | $ | 44.32 | $ | 41.90 | $ | 48.49 | ||||||
Average PJM West Price (7x24) ($/MWh) | $ | 37.65 | $ | 37.65 | $ | 43.56 | ||||||
Average NI Hub Price (7x24) ($/MWh) | $ | 29.10 | $ | 26.16 | $ | 27.41 | ||||||
NEPOOL Baseload Merchant Fleet Hedge Data:5 | ||||||||||||
Net Summer Capability (MW) | 3,442 | 3,435 | 3,435 | |||||||||
Energy % Hedged7, 8 | 88 | % | 91 | % | 100 | % | ||||||
Energy % Unhedged8 | 12 | % | 9 | % | 0 | % | ||||||
Average Energy Hedge Price ($/MWh) | $ | 80.14 | $ | 69.90 | $ | 69.90 | ||||||
PJM Baseload Merchant Fleet Hedge Data: 6 | ||||||||||||
Net Summer Capability (MW) | 515 | 515 | 515 | |||||||||
Energy % Hedged7, 8 | 84 | % | 92 | % | 100 | % | ||||||
Energy % Unhedged8 | 16 | % | 8 | % | 0 | % | ||||||
Average Energy Hedge Price ($/MWh) | $ | 55.91 | $ | 53.64 | $ | 53.62 | ||||||
| 1) | Baseload Electric Sales include Millstone and the coal units at Brayton Point and Salem Harbor.Other Electric Sales includes Manchester generating station and the oil units at Brayton Point and Salem Habor.2010 Assumption - Other Electric Sales are based on a three-year historical average due to a lack of correlation between sales volumes and EBITDA associated with mid-merit and peaking units. |
| 2) | Baseload Electric Sales include the State Line generating station.Other Electric Sales includes the Fairless generating station.2010 Assumption - Other Electric Sales are based on a three-year historical average due to a lack of correlation between sales volumes and EBITDA associated with mid-merit and peaking units. |
| 3) | Regional EBITDA, including capacity revenue. |
| 4) | 4Q10 based on Dominion’s planning assumption. 4Q10 Actuals based on December 31, 2010 commodity prices. |
| 5) | Includes Brayton Point, Millstone and Salem Harbor Baseload generating stations. |
| 6) | Includes State Line generating station only. |
| 7) | Percentage calculations are capacity-weighted. |
| 8) | Figures may not add due to rounding. |
| February 14, 2011 | 29 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Hedging
Dominion - Power, Fuel, Capacity and NGL8 Hedge Positions
(as of January 28, 2011)
Merchant Generation | Net Summer Capacity (MW) | 2011 | 2012 | |||||||||
Non-Contracted Hedge Positions1 | ||||||||||||
Millstone | 2,016 | 90 | % | 70 | % | |||||||
Dominion New England Coal | 1,419 | 50 | % | 0 | % | |||||||
Dominion New England Oil | 886 | 0 | % | 0 | % | |||||||
Manchester | 432 | 0 | % | 0 | % | |||||||
Fairless | 1,196 | 15 | % | 20 | % | |||||||
State Line | 515 | 77 | % | 76 | % | |||||||
NedPower | 132 | 38 | % | 38 | % | |||||||
Fowler Ridge | 150 | 33 | % | 33 | % | |||||||
Total Non-Contracted Hedge Position2 | 6,746 | 48 | % | 33 | % | |||||||
Total Contracted3 | 2,451 | 100 | % | 100 | % | |||||||
Fuel Hedging & Power Pricing | ||||||||||||
Dominion New England Coal (Fuel) % Hedged | 50 | % | 0 | % | ||||||||
State Line Coal (Fuel) % Hedged | 74 | % | 74 | % | ||||||||
NEPOOL Baseload - Average Hedge Price ($/MWh)4 | $ | 54.36 | $ | 50.17 | ||||||||
PJM Baseload - Average Hedge Price ($/MWh)5 | $ | 46.60 | $ | 35.32 | ||||||||
Merchant Generation Capacity - Hedging & Pricing | 2011 | 2012 | ||||||||||
EFOR Adjusted Capacity for Dominion New England & Millstone (MW) | 4,820 | 4,686 | ||||||||||
Average Capacity Hedge Price ($/KW - month)6 | $ | 3.64 | $ | 3.07 | ||||||||
EFOR Adjusted Capacity for Fairless (MW)7 | 1,171 | 1,167 | ||||||||||
Average Capacity Hedge Price ($/KW - month) | $ | 4.07 | $ | 3.89 | ||||||||
EFOR Adjusted Capacity for State Line (MW) | 476 | 485 | ||||||||||
Average Capacity Hedge Price ($/KW - month) | $ | 4.17 | $ | 1.67 | ||||||||
EFOR Adjusted Capacity for NedPower (MW) | 20 | 19 | ||||||||||
Average Capacity Hedge Price ($/KW - month) | $ | 4.23 | $ | 1.67 | ||||||||
EFOR Adjusted Capacity for Fowler Ridge (MW) | 31 | 28 | ||||||||||
Average Capacity Hedge Price ($/KW - month) | $ | 4.27 | $ | 1.64 | ||||||||
| 1) | 2011 hedge percentages are calculated based on the weighted-average of: 1) actual results which are considered to be 100% hedged, and 2) balance of year hedge percentages. Baseload units include the amount of available energy hedged. Non-baseload units include the capacity or “spark spread” hedged. Capacity shown represents only Dominion’s interest in facility. Assume capacity remains constant in all periods shown. |
| 2) | Annual percentage calculations are capacity-weighted. |
| 3) | Includes Kewaunee, Kincaid, Morgantown and Elwood Power Stations. |
| 4) | NEPOOL Baseload includes Brayton Point, Millstone and Salem Harbor Power Stations. |
| 5) | PJM Baseload includes State Line Power Station. |
| 6) | The 2012 average capacity hedge price includes the FERC approved reliability payment for Salem Harbor. |
| 7) | For the June 1, 2012 to December 31, 2012 period, Fairless RPM auction clearing price is based on Eastern MAAC LDA. |
| 8) | For 2011, estimated annual NGL sales are 170 to 180 million gallons with 134 million gallons hedged at an average price of $1.34 per gallon. |
For 2012, estimated annual NGL sales are 180 to 190 million gallons with 126 million gallons hedged at an average price of $1.30 per gallon.
Average hedge price is based on a basket of liquids products: propane (52%), normal butane (17%), iso-butane (10%) and natural gasoline (21%).
| February 14, 2011 | 30 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
GAAP Reconciliation
Reconciliation of 2010 Consolidated Operating Earnings to Reported Earnings
Dominion Consolidated
Unaudited Summary of Operating Results
(millions, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, 2010 | December 31, 2010 | |||||||||||||||||||||||
| Operating | Adjustments | GAAP | Operating | Adjustments | GAAP | |||||||||||||||||||
Operating Revenue | $ | 3,753 | $ | (7 | )(i) | $ | 3,746 | $ | 15,165 | $ | 32 | (a), (i) | $ | 15,197 | ||||||||||
Operating Expenses | ||||||||||||||||||||||||
Electric fuel and other energy-related purchases | 986 | — | 986 | 4,150 | — | 4,150 | ||||||||||||||||||
Purchased electric capacity | 120 | — | 120 | 453 | — | 453 | ||||||||||||||||||
Purchased gas | 500 | — | 500 | 2,045 | 5 | (a) | 2,050 | |||||||||||||||||
Other operations and maintenance | 983 | 32 | (h) | 1,015 | 3,164 | 560 | (a), (b), (c), (h), (i) | 3,724 | ||||||||||||||||
Depreciation, depletion and amortization | 261 | — | 261 | 1,055 | — | 1,055 | ||||||||||||||||||
Other taxes | 128 | (1 | )(a) | 127 | 521 | 11 | (a), (b) | 532 | ||||||||||||||||
Total operating expenses | 2,978 | 31 | 3,009 | 11,388 | 576 | 11,964 | ||||||||||||||||||
Gain on sale of Appalachian E&P operations | — | — | — | — | 2,467 | (a) | 2,467 | |||||||||||||||||
Income from operations | 775 | (38 | ) | 737 | 3,777 | 1,923 | 5,700 | |||||||||||||||||
Other income (loss) | 47 | 13 | (d) | 60 | 199 | (30 | )(d), (a) | 169 | ||||||||||||||||
Income including noncontrolling interests before interest and income taxes | 822 | (25 | ) | 797 | 3,976 | 1,893 | 5,869 | |||||||||||||||||
Interest and related charges | 232 | — | 232 | 832 | — | 832 | ||||||||||||||||||
Income including noncontrolling interests before income taxes | 590 | (25 | ) | 565 | 3,144 | 1,893 | 5,037 | |||||||||||||||||
Income taxes | 219 | 35 | (e) | 254 | 1,156 | 901 | (e), (f) | 2,057 | ||||||||||||||||
Income from continuing operations including noncontrolling interests | 371 | (60 | ) | 311 | 1,988 | 992 | 2,980 | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | (8 | )(g) | (8 | ) | — | (155 | )(g) | (155 | ) | ||||||||||||||
Noncontrolling interests | 5 | — | 5 | 17 | — | 17 | ||||||||||||||||||
Earnings | $ | 366 | $ | (68 | ) | $ | 298 | $ | 1,971 | $ | 837 | $ | 2,808 | |||||||||||
Earnings Per Share - Diluted | $ | 0.63 | $ | (0.12 | ) | $ | 0.51 | $ | 3.34 | $ | 1.42 | $ | 4.76 | |||||||||||
Average shares outstanding, diluted | 582.1 | 582.1 | 590.1 | 590.1 | ||||||||||||||||||||
Items Excluded From Operating Earnings
| (a) | Adjustment to exclude items resulting from the sale of the Appalachian E&P operations. |
| (b) | Adjustment to exclude charges related to the workforce reduction program. |
| (c) | Adjustment to exclude a charge resulting from the ceiling test performed for our gas and oil properties under the full cost method accounting. |
| (d) | Adjustment to exclude net gain/(loss) related to our investment in nuclear decommissioning trust funds. |
| (e) | Income tax effects for items excluded from operating results. |
| (f) | Adjustment to exclude charges related to health care legislation changes. |
| (g) | Adjustment to exclude income (loss) from Peoples discontinued operations. |
| (h) | Adjustment to exclude impairment charge related to our merchant generation facilities. |
| (i) | Adjustment to exclude other miscellaneous items at Virginia Power. |
Note: Figures may not add due to rounding
| February 14, 2011 | 31 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 2009 Consolidated Operating Earnings to Reported Earnings
Dominion Consolidated
Unaudited Summary of Operating Results
(millions, except per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| December 31, 20091 | December 31, 20091 | |||||||||||||||||||||||
| Operating | Adjustments | GAAP | Operating | Adjustments | GAAP | |||||||||||||||||||
Operating Revenue | $ | 3,617 | $ | (441 | )(j) | $ | 3,176 | $ | 15,242 | $ | (444 | )(a), (j) | $ | 14,798 | ||||||||||
Operating Expenses | ||||||||||||||||||||||||
Electric fuel and other energy-related purchases | 945 | 129 | (j) | 1,074 | 4,155 | | 130 | (i), (j) | 4,285 | |||||||||||||||
Purchased electric capacity | 102 | — | 102 | 411 | — | 411 | ||||||||||||||||||
Purchased gas | 561 | — | 561 | 2,200 | — | 2,200 | ||||||||||||||||||
Other operations and maintenance | 937 | 143 | (e), (j) | 1,080 | 3,208 | 504 | (b), (e), (h), (i), (j) | 3,712 | ||||||||||||||||
Depreciation, depletion and amortization | 290 | 24 | (c) | 314 | 1,119 | 19 | (c) | 1,138 | ||||||||||||||||
Other taxes | 117 | — | 117 | 483 | — | 483 | ||||||||||||||||||
Total operating expenses | 2,952 | 296 | 3,248 | 11,576 | 653 | 12,229 | ||||||||||||||||||
Income from operations | 665 | (737 | ) | (72 | ) | 3,666 | (1,097 | ) | 2,569 | |||||||||||||||
Other income | 55 | 3 | (d), (e) | 58 | 221 | (27 | )(d), (e) | 194 | ||||||||||||||||
Income including noncontrolling interests before interest and income taxes | 720 | (734 | ) | (14 | ) | 3,887 | (1,124 | ) | 2,763 | |||||||||||||||
Interest and related charges | 233 | — | 233 | 889 | — | 889 | ||||||||||||||||||
Income including noncontrolling interests before income taxes | 487 | (734 | ) | (247 | ) | 2,998 | (1,124 | ) | 1,874 | |||||||||||||||
Income taxes | 108 | (278 | )(f) | (170 | ) | 1,039 | (443 | )(f) | 596 | |||||||||||||||
Income from continuing operations including noncontrolling interests | 379 | (456 | ) | (77 | ) | 1,959 | (681 | ) | 1,278 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | — | 73 | (g) | 73 | — | 26 | (g) | 26 | ||||||||||||||||
Noncontrolling interests | 5 | — | 5 | 17 | — | 17 | ||||||||||||||||||
Earnings | $ | 374 | $ | (383 | ) | $ | (9 | ) | $ | 1,942 | $ | (655 | ) | $ | 1,287 | |||||||||
Earnings Per Share - Diluted | $ | 0.63 | $ | (0.64 | ) | $ | (0.01 | ) | $ | 3.27 | $ | (1.10 | ) | $ | 2.17 | |||||||||
Average shares outstanding, diluted | 598.1 | 598.1 | 593.7 | 593.7 | ||||||||||||||||||||
| (a) | Adjustment to exclude contract charge related to Non-Appalachian E&P divestiture. |
| (b) | Adjustment to exclude a charge resulting from the ceiling test performed for our gas and oil properties under the full cost method accounting. |
| (c) | Adjustment to exclude the transactions related to the planned sale of Hope. |
| (d) | Adjustment to exclude net gain/(loss) related to our investment in nuclear decommissioning trust funds. |
| (e) | Adjustment to exclude impairment on equity method investment. |
| (f) | Income tax effect for items excluded from operating results. |
| (g) | Adjustment to exclude income (loss) from Peoples discontinued operations. |
| (h) | Adjustment to exclude a benefit due to a downward revision in the nuclear decommissioning asset retirement obligation for a power station that is no longer in service. |
| (i) | Adjustment to exclude charges related to other items. |
| (j) | Adjustments to exclude charges in connection with the settlement of Virginia Power’s 2009 rate case. |
| 1) | Our 2009 income statements have been recast due to the reclassification of Peoples’ results to discontinued operations. |
Note: Figures may not add due to rounding
| February 14, 2011 | 32 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 2010 Corporate and Other Operating Earnings to Reported Earnings
Corporate and Other
Unaudited Summary of Operating Results
(millions, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, 2010 | December 31, 2010 | |||||||||||||||||||||||
| Operating | Adjustments | GAAP | Operating | Adjustments | GAAP | |||||||||||||||||||
Operating Revenue | $ | 177 | $ | (7 | )(i) | $ | 170 | $ | 737 | $ | 32 | (a), (i) | $ | 769 | ||||||||||
Operating Expenses | ||||||||||||||||||||||||
Electric fuel and other energy-related purchases | — | — | — | — | — | — | ||||||||||||||||||
Purchased electric capacity | — | — | — | — | — | — | ||||||||||||||||||
Purchased gas | 1 | — | 1 | 6 | 5 | (a) | 11 | |||||||||||||||||
Other operations and maintenance | 164 | 32 | (h) | 196 | 711 | 560 | (a),(b), (c), (h), (i) | 1,271 | ||||||||||||||||
Depreciation, depletion and amortization | 7 | — | 7 | 30 | — | 30 | ||||||||||||||||||
Other taxes | 8 | (1 | )(a) | 7 | 35 | 11 | (a), (b) | 46 | ||||||||||||||||
Total operating expenses | 180 | 31 | 211 | 782 | 576 | 1,358 | ||||||||||||||||||
Gain on sale of Appalachian E&P operations | — | — | — | — | 2,467 | (a) | 2,467 | |||||||||||||||||
Income from operations | (3 | ) | (38 | ) | (41 | ) | (45 | ) | 1,923 | 1,878 | ||||||||||||||
Other income (loss) | 19 | 13 | (d) | 32 | 102 | (30 | )(d), (a) | 72 | ||||||||||||||||
Income including noncontrolling interests before interest and income taxes | 16 | (25 | ) | (9 | ) | 57 | 1,893 | 1,950 | ||||||||||||||||
Interest and related charges | 141 | — | 141 | 494 | — | 494 | ||||||||||||||||||
Income including noncontrolling interests before income taxes | (125 | ) | (25 | ) | (150 | ) | (437 | ) | 1,893 | 1,456 | ||||||||||||||
Income taxes | (51 | ) | 35 | (e) | (16 | ) | (194 | ) | 901 | (e), (f) | 707 | |||||||||||||
Income from continuing operations including noncontrolling interests | (74 | ) | (60 | ) | (134 | ) | (243 | ) | 992 | 749 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | (8 | )(g) | (8 | ) | — | (155 | )(g) | (155 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||
Earnings (Loss) Contribution | $ | (74 | ) | $ | (68 | ) | $ | (142 | ) | $ | (243 | ) | $ | 837 | $ | 594 | ||||||||
Earnings Per Share | $ | (0.13 | ) | $ | (0.12 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | 1.42 | $ | 1.01 | ||||||||
Average shares outstanding, diluted | 582.1 | 582.1 | 590.1 | 590.1 | ||||||||||||||||||||
Items Excluded From Operating Earnings
| (a) | Adjustment to exclude items resulting from the sale of the Appalachian E&P operations. |
| (b) | Adjustment to exclude charges related to the workforce reduction program. |
| (c) | Adjustment to exclude a charge resulting from the ceiling test performed for our gas and oil properties under the full cost method accounting. |
| (d) | Adjustment to exclude net gain/(loss) related to our investment in nuclear decommissioning trust funds. |
| (e) | Income tax effects for items excluded from operating results. |
| (f) | Adjustment to exclude charges related to health care legislation changes. |
| (g) | Adjustment to exclude income (loss) from Peoples discontinued operations. |
| (h) | Adjustment to exclude impairment charges related to our merchant generation facilities. |
| (i) | Adjustment to exclude other miscellaneous items at Virginia Power. |
Note: Figures may not add due to rounding
| February 14, 2011 | 33 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 2009 Corporate and Other Operating Earnings to Reported Earnings
Corporate and Other
Unaudited Summary of Operating Results
(millions, except per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||||||||||
| December 31, 2009 1 | December 31, 20091 | |||||||||||||||||||||||
| Operating | Adjustments | GAAP | Operating | Adjustments | GAAP | |||||||||||||||||||
Operating Revenue | $ | 182 | $ | (441 | )(j) | $ | (259 | ) | $ | 683 | $ | (444 | )(a), (j) | $ | 239 | |||||||||
Operating Expenses | ||||||||||||||||||||||||
Electric fuel and other energy-related purchases | — | 129 | (j) | 129 | — | 130 | (i), (j) | 130 | ||||||||||||||||
Purchased electric capacity | — | — | — | — | — | — | ||||||||||||||||||
Purchased gas | 1 | — | 1 | 4 | — | 4 | ||||||||||||||||||
Other operations and maintenance | 181 | 143 | (e), (j) | 324 | 681 | 504 | (b), (e), (h), (i), (j) | 1,185 | ||||||||||||||||
Depreciation, depletion and amortization | 8 | 24 | (c) | 32 | 29 | 19 | (c) | 48 | ||||||||||||||||
Other taxes | 6 | — | 6 | 30 | — | 30 | ||||||||||||||||||
Total operating expenses | 196 | 296 | 492 | 744 | 653 | 1,397 | ||||||||||||||||||
Income from operations | (14 | ) | (737 | ) | (751 | ) | (61 | ) | (1,097 | ) | (1,158 | ) | ||||||||||||
Other income | 39 | 3 | (d), (e) | 42 | 147 | (27 | )(d), (e) | 120 | ||||||||||||||||
Income including noncontrolling interests before interest and income taxes | 25 | (734 | ) | (709 | ) | 86 | (1,124 | ) | (1,038 | ) | ||||||||||||||
Interest and related charges | 145 | — | 145 | 533 | — | 533 | ||||||||||||||||||
Income including noncontrolling interests before income taxes | (120 | ) | (734 | ) | (854 | ) | (447 | ) | (1,124 | ) | (1,571 | ) | ||||||||||||
Income taxes | (74 | ) | (278 | )(f) | (352 | ) | (207 | ) | (443 | )(f) | (650 | ) | ||||||||||||
Income from continuing operations including noncontrolling interests | (46 | ) | (456 | ) | (502 | ) | (240 | ) | (681 | ) | (921 | ) | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | 73 | (g) | 73 | — | 26 | (g) | 26 | ||||||||||||||||
Noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||
Earnings (Loss) Contribution | $ | (46 | ) | $ | (383 | ) | $ | (429 | ) | $ | (240 | ) | $ | (655 | ) | $ | (895 | ) | ||||||
Earnings Per Share | $ | (0.08 | ) | $ | (0.64 | ) | $ | (0.72 | ) | $ | (0.41 | ) | $ | (1.10 | ) | $ | (1.51 | ) | ||||||
Average shares outstanding, diluted | 598.1 | 598.1 | 593.7 | 593.7 | ||||||||||||||||||||
| (a) | Adjustment to exclude contract charge related to Non- Appalachian E&P divestiture. |
| (b) | Adjustment to exclude a charge resulting from the ceiling test performed for our gas and oil properties under the full cost method accounting. |
| (c) | Adjustment to exclude the transactions related to the planned sale of Hope. |
| (d) | Adjustment to exclude net gain/(loss) related to our investment in nuclear decommissioning trust funds. |
| (e) | Adjustment to exclude impairment on equity method investment. |
| (f) | Income tax effect for items excluded from operating results. |
| (g) | Adjustment to exclude income (loss) from Peoples discontinued operations. |
| (h) | Adjustment to exclude a benefit due to a downward revision in the nuclear decommissioning asset retirement obligation for a power station that is no longer in service. |
| (i) | Adjustment to exclude charges related to other items. |
| (j) | Adjustments to exclude charges in connection with the settlement of Virginia Power’s 2009 rate case. |
| 1) | Our 2009 income statements have been recast due to the reclassification of Peoples’ results to discontinued operations. |
Note: Figures may not add due to rounding
| February 14, 2011 | 34 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 2009 Operating Earnings to Reported Earnings
Dominion
Reconciliation of 2009 Operating to 2009 GAAP
Unaudited, Operating Segments
(millions, except per share amounts)
Description | 2009 Operating | Adjustments | 2009 GAAP | |||||||||
Dominion Virginia Power EBIT | $ | 784 | $ | 784 | ||||||||
Dominion Energy EBIT | 949 | 949 | ||||||||||
Dominion Generation EBIT | 2,185 | 2,185 | ||||||||||
Corporate and Other & Eliminations EBIT | (32 | ) | (1,124 | )(a),(b),(c),(d) | (1,156 | ) | ||||||
Total EBIT | $ | 3,887 | ($1,124 | ) | $ | 2,763 | ||||||
Consolidated Interest | 889 | 889 | ||||||||||
Consolidated Income Taxes | 1,039 | (443 | )(e) | 596 | ||||||||
Noncontrolling Interests | 17 | 17 | ||||||||||
Income (loss) from Discontinued Operations | 0 | 26 | (f) | 26 | ||||||||
Earnings | $ | 1,942 | ($655 | ) | $ | 1,287 | ||||||
Average Diluted Shares Outstanding | 593.7 | 593.7 | 593.7 | |||||||||
Operating EPS | $ | 3.27 | — | — | ||||||||
Adjustments | — | ($1.10 | ) | — | ||||||||
Reported EPS | — | — | $ | 2.17 | ||||||||
Note: Totals may not add due to rounding
Items Excluded from Operating
| (a) | Adjustment to exclude charges in connection with the settlement of Virginia Power’s 2009 rate case proceedings. |
| (b) | Adjustment to exclude a charge resulting from the ceiling test performed for our gas and oil properties under the full cost method accounting. |
| (c) | Adjustment to exclude a benefit due to a downward revision in the nuclear decommissioning asset retirement obligation for a power station unit that is no longer in service. |
| (d) | Adjustments to exclude net gains (losses) related to our investment in nuclear decommissioning trust funds and other miscellaneous items. |
| (e) | Income tax effect for items excluded from operating results. |
| (f) | Adjustments to exclude Peoples discontinued operations. |
| February 14, 2011 | 35 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 2010 Operating Earnings to Reported Earnings
Dominion
Reconciliation of 2010 Operating to 2010 GAAP
Unaudited, Operating Segments
(millions, except per share amounts)
Description | 2010 Operating | Adjustments | 2010 GAAP | |||||||||
Dominion Virginia Power EBIT | $ | 891 | $ | 891 | ||||||||
Dominion Energy EBIT | 862 | 862 | ||||||||||
Dominion Generation EBIT | 2,256 | 2,256 | ||||||||||
Corporate and Other & Eliminations EBIT | (33 | ) | 1,893 | (a),(b),(c),(d),(e) | 1,860 | |||||||
Total EBIT | 3,976 | $ | 1,893 | 5,869 | ||||||||
Consolidated Interest | 832 | 0 | 832 | |||||||||
Consolidated Income Taxes | 1,156 | 901 | (f),(g) | 2,057 | ||||||||
Noncontrolling Interests | 17 | 0 | 17 | |||||||||
Income (loss) from Discontinued Operations | 0 | (155 | )(h) | (155 | ) | |||||||
Earnings | $ | 1,971 | $ | 837 | $ | 2,808 | ||||||
| 590.1 | 590.1 | 590.1 | ||||||||||
Operating EPS | $ | 3.34 | — | — | ||||||||
Adjustments | — | $ | 1.42 | — | ||||||||
Reported EPS | — | — | $ | 4.76 | ||||||||
Note: Totals may not add due to rounding
Items Excluded from Operating
| (a) | Adjustment to exclude net gain related to our investment in nuclear decommissioning trust funds. |
| (b) | Adjustment to exclude a net benefit resulting from the sale of our Appalachian E&P operations. |
| (c) | Adjustments to exclude severance pay and other benefits related to a workforce reduction program. |
| (d) | Adjustment to exclude an impairment charge related to electric utility SO2 emission allowances. |
| (e) | Adjustment to exclude impairment charges related to our merchant generation facilities and other miscellaneous items. |
| (f) | Income tax effect for the adjustments excluded from operating results. |
| (g) | Adjustment to exclude charges related to 2010 health care law changes that eliminated a tax deduction for a portion of certain retiree health care costs. |
| (h) | Adjustment to exclude Peoples discontinued operations. |
| February 14, 2011 | 36 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 4Q09 Operating Earnings to Reported Earnings
Dominion
Reconciliation of 4Q09 Operating to 4Q09 GAAP
Unaudited, Operating Segments
(millions, except per share amounts)
Description | 4Q09 Operating | Adjustments | 4Q09 GAAP | |||||||||
Dominion Virginia Power EBIT | $ | 189 | $ | 189 | ||||||||
Dominion Energy EBIT | 250 | 250 | ||||||||||
Dominion Generation EBIT | 283 | 283 | ||||||||||
Corporate and Other & Eliminations EBIT | (2 | ) | (734 | )(a),(b) | (736 | ) | ||||||
Total EBIT | $ | 720 | ($734 | ) | ($14 | ) | ||||||
Consolidated Interest | 233 | 233 | ||||||||||
Consolidated Income Taxes | 108 | (278 | )(c) | (170 | ) | |||||||
Noncontrolling Interests | 5 | 5 | ||||||||||
Income (loss) from Discontinued Operations | 0 | 73 | (d) | 73 | ||||||||
Earnings | $ | 374 | ($383 | ) | ($9 | ) | ||||||
Average Diluted Shares Outstanding | 598.1 | 598.1 | 598.1 | |||||||||
Operating EPS | $ | 0.63 | — | — | ||||||||
Adjustments | — | ($0.64 | ) | — | ||||||||
Reported EPS | — | — | ($0.01 | ) | ||||||||
Items Excluded from Operating Earnings
| (a) | Adjustment to exclude charges in connection with the proposed settlement of Virginia Power’s 2009 rate case proceedings. |
| (b) | Adjustment to exclude net gains (losses) related to our investment in nuclear decommissioning trust funds and other miscellaneous items. |
| (c) | Income tax effect for the adjustments excluded from operating results. |
| (d) | Adjustment to exclude net income (loss) of Peoples discontinued operations. |
Note: Figures may not add due to rounding
| February 14, 2011 | 37 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Reconciliation of 4Q10 Operating Earnings to Reported Earnings
Dominion
Reconciliation of 4Q10 Operating to 4Q10 GAAP
Unaudited, Operating Segments
(millions, except per share amounts)
Description | 4Q10 Operating | Adjustments | 4Q10 GAAP | |||||||||
Dominion Virginia Power EBIT | $ | 229 | $ | 229 | ||||||||
Dominion Energy EBIT | 220 | 220 | ||||||||||
Dominion Generation EBIT | 375 | 375 | ||||||||||
Corporate and Other & Eliminations EBIT | (2 | ) | (25 | )(a),(b) | (27 | ) | ||||||
Total EBIT | 822 | ($25 | ) | 797 | ||||||||
Consolidated Interest | 232 | 232 | ||||||||||
Consolidated Income Taxes | 219 | 35 | (c) | 254 | ||||||||
Noncontrolling Interests | 5 | 5 | ||||||||||
Income (loss) from Discontinued Operations | 0 | (8 | )(d) | (8 | ) | |||||||
Earnings | $ | 366 | ($68 | ) | $ | 298 | ||||||
| 582.1 | 582.1 | 582.1 | ||||||||||
Operating EPS | $ | 0.63 | — | — | ||||||||
Adjustments | — | ($0.12 | ) | — | ||||||||
Reported EPS | — | — | $ | 0.51 | ||||||||
Note: Totals may not add due to rounding
Items Excluded from Operating
| (a) | Adjustment to exclude net gain related to our investment in nuclear decommissioning trust funds. |
| (b) | Adjustment to exclude an impairment charge related to one of our merchant generation facilities and other miscellaneous items. |
| (c) | Income tax effect for the adjustments excluded from operating results. |
| (d) | Adjustment to exclude Peoples discontinued operations. |
| February 14, 2011 | 38 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
2010 and 2011 Earnings Expectations
Earnings Per Share (diluted)
Reconciliation of measures prepared in accordance with Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
1Q 2010 Operating Earnings (actual): | $0.96 | |||
2Q 2010 Operating Earnings (actual): | $0.72 | |||
3Q 2010 Operating Earnings (actual): | $1.03 | |||
4Q 2010 Operating Earnings (actual): | $0.63 | |||
FY 2010 Operating Earnings (actual): | $3.34 | |||
1Q 2011 Operating Earnings (estimate): | $0.85 - $0.95 | |||
FY 2011 Operating Earnings (estimate): | $3.00 - $3.30 | |||
1Q 2010 Reported Earnings (actual): | $0.29 | |||
2Q 2010 Reported Earnings (actual): | $2.98 | |||
3Q 2010 Reported Earnings (actual): | $0.98 | |||
4Q 2010 Reported Earnings (actual): | $0.51 | |||
FY 2010 Reported Earnings (actual): | $4.76 | |||
1Q 2011 Reported Earnings (estimate): | See Note 1 below | |||
FY 2011 Reported Earnings (estimate): | See Note 1 below |
| 1. | In providing its first-quarter and full-year 2011 operating earnings guidance the company notes that there could be differences between expected reported earnings and estimated operating earnings for matters such as, but not limited to, divestitures or changes in accounting principles. At this time, Dominion management is not able to estimate the impact, if any, of these items on reported earnings. Accordingly, Dominion is not able to provide a corresponding GAAP equivalent for its operating earnings guidance. |
Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion also uses operating earnings internally for budgeting, for reporting to the board of directors, for the company’s incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
Dominion’s estimates of first-quarter and full-year 2011 earnings are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations may include factors that are beyond the company’s ability to control or estimate precisely, fluctuations in energy-related commodity prices, the timing of the closing dates of acquisitions or divestitures, estimates of future market conditions, access to and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, the timing and receipt of regulatory approvals necessary for planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects as scheduled. Other factors include, but are not limited to, weather conditions, including the effects of hurricanes and major storms on operations, the behavior of other market participants, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, economic conditions in the company’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, counter-party credit risks, risks related to energy trading and marketing, adverse outcomes in litigation matters, and other uncertainties. Other risk factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.
| February 14, 2011 | 39 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Appendix
2010 Weather Variance
Dominion - Effect of weather compared to normal1
Pre-tax Impact ($millions)
| ||||||||||||||||||||
Description | 1Q10 | 2Q10 | 3Q10 | 4Q10 | FY2010 | |||||||||||||||
Gas Distribution2 | $ | 2.1 | ($2.8 | ) | ($0.1 | ) | $ | 2.5 | $ | 1.7 | ||||||||||
Electric Distribution3 | 13.1 | 17.2 | 20.3 | 8.6 | $ | 59.2 | ||||||||||||||
Electric Transmission3 | 0.2 | 0.3 | 0.5 | 0.2 | $ | 1.2 | ||||||||||||||
Utility Generation (VaP)4 | 26.7 | 38.9 | 51.9 | 16.6 | $ | 134.2 | ||||||||||||||
Earnings Impact (pre-tax) | $ | 42.1 | $ | 53.6 | $ | 72.6 | $ | 27.9 | $ | 196.3 | ||||||||||
After-tax Impact ($millions)
| ||||||||||||||||||||
Description | 1Q10 | 2Q10 | 3Q10 | 4Q10 | FY2010 | |||||||||||||||
Gas Distribution2 | $ | 1.3 | ($1.8 | ) | $ | 0.0 | $ | 1.6 | $ | 1.1 | ||||||||||
Electric Distribution3 | 7.9 | 10.5 | 12.4 | 5.2 | $ | 36.0 | ||||||||||||||
Electric Transmission3 | 0.2 | 0.3 | 0.3 | 0.2 | $ | 1.0 | ||||||||||||||
Utility Generation (VaP)4 | 16.5 | 24.2 | 32.2 | 10.3 | $ | 83.2 | ||||||||||||||
Earnings Impact (after-tax) | $ | 25.9 | $ | 33.2 | $ | 44.9 | $ | 17.3 | $ | 121.3 | ||||||||||
Dominion - Effect of weather compared to prior period1
Pre-tax Impact ($millions)
| ||||||||||||||||||||
Description | 1Q’10 v. ‘09 | 2Q’10 v. ‘09 | 3Q’10 v. ‘09 | 4Q’10 v. ‘09 | FY ’10 v. ‘09 | |||||||||||||||
Gas Distribution2 | ($2.5 | ) | ($2.1 | ) | $ | 0.3 | $ | 2.2 | ($2.1 | ) | ||||||||||
Electric Distribution3 | 5.4 | 18.9 | 34.6 | 12.8 | $ | 71.7 | ||||||||||||||
Electric Transmission3 | 0.9 | 2.5 | 3.4 | 0.2 | $ | 7.0 | ||||||||||||||
Utility Generation (VaP)4 | 11.2 | 43.4 | 88.4 | 24.8 | $ | 167.8 | ||||||||||||||
Earnings Impact (pre-tax) | $ | 15.0 | $ | 62.7 | $ | 126.7 | $ | 40.0 | $ | 244.4 | ||||||||||
After-tax Impact ($millions)
| ||||||||||||||||||||
Description | 1Q’10 v. ‘09 | 2Q’10 v. ‘09 | 3Q’10 v. ‘09 | 4Q’10 v. ‘09 | FY ’10 v. ‘09 | |||||||||||||||
Gas Distribution2 | ($1.7 | ) | ($1.3 | ) | $ | 0.2 | $ | 1.4 | ($1.4 | ) | ||||||||||
Electric Distribution3 | 3.3 | 11.5 | 21.1 | 7.8 | $ | 43.7 | ||||||||||||||
Electric Transmission3 | 0.6 | 1.5 | 2.2 | 0.1 | $ | 4.4 | ||||||||||||||
Utility Generation (VaP)4 | 6.9 | 27.0 | 54.8 | 15.4 | $ | 104.1 | ||||||||||||||
Earnings Impact (after-tax) | $ | 9.1 | $ | 38.7 | $ | 78.3 | $ | 24.7 | $ | 150.8 | ||||||||||
| 1) | The effects on earnings from differences in weather compared to normal and compared to prior period are measured using base rate revenue. This schedule does not reflect the O&M expenditures for restoring service associated with outages caused by major storms. |
| 2) | Reported in the Dominion Energy segment. Includes Dominion East Ohio Gas Company and Hope Gas, Inc. |
| 3) | Reported in the Dominion Virginia Power segment. |
| 4) | Reported in the Dominion Generation segment. |
Note: Figures may not add due to rounding
| February 14, 2011 | 40 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
Supplemental Treasury Information
Dominion Liquidity Position
(All amounts in $ millions)
Description | 12/31/2010 | |||
Total Committed Bank Lines | $ | 3,500 | ||
Less: | ||||
Commercial Paper Outstanding | 1,386 | |||
Letters of Credit Issued | 136 | |||
Funded Loans | 0 | |||
Total Available Capacity | $ | 1,978 | ||
Cash & Short-Term Investments On Hand | 62 | |||
Total Liquidity Available | $ | 2,040 | ||
Committed bank lines consist of the following:
A $3.0 billion three-year revolving credit facility entered into by Dominion Resources, Inc. (“DRI”) and Virginia Electric and Power Company (“VEPCO”) in September 2010 which terminates in September 2013. This facility is available to DRI as well as VEPCO.
A $500 million on three-year revolving credit facility entered into by DRI and VEPCO in September 2010 which terminates in September 2013. This facility is available to DRI as well as VEPCO.
Additionally, there is a $120 million three-year revolving credit facility (not reflected in table above) entered into by VEPCO in September 2010, and which terminates in September 2013, which is dedicated to certain tax-exempt bond issuances by VEPCO.
Please refer to page 25 of this Earnings Release Kit for a Schedule of Debt Maturities.
| February 14, 2011 | 41 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.
DOMINION – REVISED 4Q10 EARNINGS RELEASE KIT
List of Revised Schedules
The following Schedules, included in this Release Kit, have been revised to reflect the reversal of charges related to a reserve for potential rate credits at Virginia Power.
Schedule | Page Number | |||
Schedule 1 - Segment Operating Earnings | 8 | |||
Schedule 2 - Reconciliation of 2010 Operating Earnings to Reported Earnings | 9 | |||
Schedule 4 - Reconciliation of 2010 Earnings to 2009 | 11 | |||
Consolidated Financial Statements (GAAP) - Dominion Consolidated | ||||
Preliminary & Unaudited Income Statements (GAAP Based) | 12 | |||
Preliminary & Unaudited Balance Sheets (Summarized) | 13 | |||
Preliminary & Unaudited Statements of Cash Flows (Summarized) | 14 | |||
Segment Operating Earnings Results | ||||
Dominion Consolidated - Unaudited Summary of Operating Results | 15 | |||
Corporate and Other - Unaudited Summary of Operating Results | 19 | |||
Dominion - Unaudited Operating Revenue Detail (GAAP Based) | 20 | |||
Operating Statistics - Dominion Consolidated | 21 | |||
Schedule of Changes in Capitalization - Dominion Resources, Inc. & Subsidiaries | 26 | |||
GAAP Reconciliation | ||||
Reconciliation of 2010 Consolidated Operating Earnings to Reported Earnings (Unaudited) | 31 | |||
Reconciliation of 2010 Corporate and Other Operating Earnings to Reported Earnings (Unaudited) | 33 | |||
Reconciliation of 2010 Operating Earnings to Reported Earnings | 36 | |||
Reconciliation of 4Q10 Operating Earnings to Reported Earnings | 38 | |||
GAAP Reconciliation - 2010 and 2011 Earnings Expectations | 39 | |||
| February 14, 2011 | 42 |
Please refer to the “Important Note to Investors” on page 3 of the REVISED 4Q10 Earnings Release
Kit for risks and uncertainties related to projections and forward-looking statements.