D - Earnings call transcript Q1 2017

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Operator

Good morning and welcome to the Dominion Energy and Dominion Energy Midstream Partners First Quarter Earnings Conference Call. At this time, each of your lines is in a listen-only mode. At the conclusion of today's presentation, we will open the floor for questions. Instructions will be given as to the procedure to follow, if you would like to ask a question. I would like to now turn the call over to Tom Hamlin, Vice President of Investor Relations and Financial Planning for the Safe Harbor Statement.

Tom Hamlin

to Energy quarter Partners. and welcome call earnings and Dominion for Dominion morning the XXXX first conference Good Energy Midstream

any this the answer and and will refer of this will the operating earnings clarification release call, statistics schedules are in call detailed During in intended be questions kit included to to kit. to Schedules Relations morning's more schedules. from available accounting. pages certain releases for Investor release after our the earnings these earnings we pertaining

have not the and documents. you for our done If earnings you so, alerts, to Investor websites, I visit view email on quarter encourage our fourth Relations page register

Our website and addresses are dominionenergy.com dominionenergymidstream.com.

will release. directly may for kit, that have statements matters differ and Also And release forecasts, earnings measures press comparable recognized addition from those to Reports discussion. refer by report financial most earnings slide Energy discussed cautionary follow in on GAAP. of Form now SEC Reports to the of for management's contain In performance Reconciliation Company's we measures may contained the that our that be the the will Dominion included kit most Midstream other GAAP recent Quarterly the this XX-K this cause forward-looking non-GAAP we a and results of on will from factors we to are are on Please our that to call, estimates, and uncertainties. estimates XX-Q measures earnings Partners’ releases able usual and calculate Annual differ that morning's Form on to subject presentation expectations. release discussion call projections, and and a the discuss to language; that including risks our our and website on are filings today our our various some

the earnings discuss are of this McGettrick. our made Farrell; management turn operating team. our our on CEO, other Dominion will plans. members our will Mark review us growth progress financial we’ve review plans our Mark McGettrick; activities and and over now Energy's Mark our on morning and to the Tom will earnings call Tom guidance. the results, Joining call and regulatory CFO, I

Mark McGettrick

principal than to Good reported share per our quarter distribution our our the in expenses which about of electric for of and merchant at morning. lower first Schedule for factor earnings anticipated. in the X the share The to of The quarter for relative range. farmout reform Virginia, margins operating trust. factors on earnings gas $XXX credits the future Dominion Earnings operating the include negative businesses, to generation recently rate Energy in-service business, our pursuant Kit. on Cove a earnings earnings Point. $X.XX loss of $XX per quarter. enacted delay decommissioning pretax legislation; between the of GAAP our nuclear to and pretax of customers for can be reported operating a market million $X.XX transactions, The guidance more from operating A were GAAP in XXXX the a were date top higher and earnings our million guidance was growth reconciliation to for differences and principal for from electric found positive one-month charge tax transmission was relative Release benefit guidance quarter

Moving to results by business segment.

which and range. the group business Merchant results. unit produced of and end our group Higher and drove better half reflecting the maintenance in first the the quarter, in The for availability our its $XXX operating lower-than-expected Delivery positive transmission EBITDA of margins was at Our million expenses. its $XXX electric quarter, our the results excellent principal Power positive exceeded guidance was expenses operating Lower-than-expected colder range. upper which factor. top Power was first EBITDA business, million from Generation Generation guidance the also in weather; had of group

produced EBITDA in quarter, of Infrastructure million Gas Our half of guidance the in $XXX group its first range. the which lower was

to Cove later were earlier, we was date than to well in-service exports at first results last from Point therefore, strong in quarter the our Distributable in agreements of no compared pleased quarter time our which was produced Partially about year's first are XXXX expected one-month was Partners quarter above as groups. was execution strong flow operating million XX% two the first of underperformance. distribution cash offsetting was and Energy EBITDA for with as the made in gas first adjusted factor quarter. of earnings produced the mentioned operations. issued the As Midstream the Dominion from primary we $XX.X the farm-out XXXX. $XX.X contribution million and guidance Overall, very $XX.X impact the results of the million,

prior April on quarter, On company. Board quarter's first common with the to Energy last distribution credit This XX. During per their million credit parent May we facility $XXX XX, declared Midstream represented payment. the secured replace revolving over for payable of unit increase Midstream's Directors distribution line Dominion $X.XXXX a a of Dominion X%

of utilize regard by to to and ratio X.XX Midstream any on strong gas will pipelines master at Dominion and announcement to immaterial are the to earnings by days change We policy market a flow, Pipeline, will value MLPs, be years change rehearing that DM at not limited MLP Point the directly Energy. remain decision of ratemaking has We believe was us cost over hope with eligible have MLP investments made capital expedited others remains market FERC. unexpected announcement. billion Atlantic for times. coverage enable trading The that actions. which XX impacted Partners lost reversed selloff long-held On the followed conditions take to FERC our Our that impact improve will this and before Energy Cove of both sufficiently policy issue $XX it owned in any for XX, recycle Dominion March FERC's Coast an filed partnerships. the cash distributable with and whereby of natural FERC's We

year. reasonable trade and we can is markets do DM equity the MLP MLPs as Furthermore, planned meantime, Midstream's plan new at In to we in prior a restructure at the the rights of unresolved this on and incentive Dominion remains access we new to levels, as in at X% Therefore, the strong, will improvement for continue Cove to drop-down by continue previously absent returning capital to As issue pipeline capital this of believe our from price, not Energy the markets Board times, coverage depressed assets the FERC equity. Point market cash supported long investment in will as partnership. for be to above DM at distribution we Directors our the such X to terms. distributions in the a increases we market quarterly stable flows material not current recommend making of portion long the

activities which Moving our balance profile. initiatives in and Dominion of last are for support we a planned On of to Treasury at our outlined XXXX, Energy. have call, we number sheet credit

common we in First, equity $XXX new issued January. million through our program aftermarket of

$X next planned our Second, we two expenditures reduced by years. billion the over capital

being to a facilities $XXX a In disruption and the the markets the that between to total of and billion plan original Third, capital billion and in alternative the we XXXX. plan, alternative to our of credit A to comparison we shown X. a parent plans light $X in In Midstream. the made $X upsized XXXX payments cash changes, added of policy upstream Point Cove to proposals our plan customers. have at financing Dominion from credit is billion million same of between for our for MLP planning our are Slide of Cove changes were Dominion's and on line with achieve Point. export financing of number $X is MLP MLPs secured financing to XX-year debt order the objectives. FERC's replaced following at by are financial Recall markets stable which flows, cash use Both primarily we

we issue the common $X billion year into agreements year, expect to Earlier incremental the to this bringing month, debt our billion. year. an financings We entered complete to for $X.X total this later stock of this

program, the exception $XXX issuance year through to equity about our of marketed under With we completes planned normal per XXXX. this that plan DRIP million issue our

some to earlier than years targeted the actions venture. share including These enable still our Blue joint targets of non-core while achieve potential for our us parent earnings have our two we reduction targets. Finally, sale, planned company will Racer assets achieving debt level growth

at at per share, second The Energy, Millstone, Point, to are $X.XX operating positive earnings to absence are to Dominion of earnings year's in Now outage year relative share $X.XX the expected quarter. Cove factors factors $X.XX due XX% lower above refueling last quarter and year guidance quarter of earnings for earned be a XXXX and tax per earnings weather. $X.XX the this XXXX the to a count. a of XXXX per relative is second reform higher compared from second last guidance to guidance and Operating credits, between expense costs tax are our middle solar-related range range. normal at last midpoint lower is $X.XX share. for The investment year's tax to share the higher of return to of unchanged to financing Negative for

now results quarter, for of midpoint the first the the results to guidance the we are Given our expect above for year. produce range strong that

rate to XXXX through XXXX. earnings X% X% of estimate Our also remains growth

were top from earnings landing financial strong by expected driven were the performance a guidance each our let share results Operating So reform. me of of summarize review. businesses tax by than These benefit our higher $X.XX and range. per in at

policy be taking above consistent at earnings markets response financial of of our are range, operating FERC's XXXX unexpected midpoint expected guidance operating XXXX our least We still guidance. MLP depressed previous with to are in earnings to XX% to aggressive the steps light change.

despite to rates remains made the plans. to XXXX earnings X% to XXXX Our X% changes our financing growth

to XX% intention dividend our over growth the XXXX in The turn rate, we X% the viability I with on Tom XXXX. market of to time. in that Farrell. MLP our is dividend between to rate will depending to call regard and expected increase growth reiterate the at now and our XX% Finally, XXXX

Thomas Farrell

morning. Good

through X.XX. first rate of last An XX% low an XXXX X.XX OSHA safety additional in then to employees’ of a was continued record-setting Our loan exceeded performance that of by XXXX. the record year quarter recordable reached new was all-time record improvement

commitment the of industry-leading business performance. this our are each company-wide of to record-setting very safety first year's I'm pace. last proud our ahead quarter year, of of segments For meaningfully

was sales new growth sales continues of On was in for reactor to Our unplanned fleet achieved March to first a fleet Energy's counting factor for set first days the Previous XXXX. quarter customers. residential over an quarter led centers X.X% record data were first in by XXX the shutdown. up Weather-normalized XXXX, the automatic without electric of XXX operate and Dominion our nuclear The operating XX, net and for well. six nuclear units record, quarter days company XX.X%. capacity

center year's During the data first more three quarter. quarter, six than new last were campuses connected,

added strong XX continue the Over expect demand last months, centers to across we've growth. megawatts of see to XX over and data XXX

per largest and in Cove the new Now $X XX,XXX United involved capacity update payroll facility the declared April about has State Dominion million per Point an Liquefaction States craft of tons X. the of equivalent on and with more our of Coast day. for Liquefaction local to largest constructed workers ever nationwide. growth It has following East reviews only billion, more operate of is October three nameplate $XXX than state plans. federal, X.XX Point construction the commercial is on began a of on project to actually million cost X.X the Maryland. a Construction project is on date million. to of and facility gallons for it XXXX second the be annum export first Cove of LNG was facility more years than to project constructed than At LNG, Energy approvals.

pipeline which to miles of dekatherms Tokyo All Point Dominion and into from contracted South station Sumitomo The Carolina $XXX Cove deliver of million the for joint natural Point project of will of This complete was and Also quarter, began since fully investment completed in Energy third a gas project, with during included largest In the and annual Gale. the the full and Despite XX along and more XX,XXX including operations XXXX Energy of project on an the the than history complete project Atlantic is several day areas, compressor XXX Carolina. Carolina is Carolina. about we years, our first Gas project is planned We've new the project. felling million began and to new South expansion Energy. XX the about Coast begin also of affiliate to compressor this were approvals $XXX the XX, placed Dominion and per gas XXX customers venture a output when expansion gas EBITDA begun Charleston in to service. Pipeline related to tree route construction in to start, generate in growth Supply export able Cove for trees miles Corporation receive Dominion late miles three to mile the other Header facilities. numerous of we January cutting quarters pipeline year. stations

FERC Just pipeline full begin progress this Header of in construction our a granted the to week, Supply on project. section

weeks, Supply Virginia as in the the We we have Virginia The next the North which Greensville A the projects request time DEQ, year. on expected are with of erosion by similar our County FERC of Virginia expect a fourth filing we prompt Construction full and will filed approval budget. Atlantic and begin to make quarter for of file Combined to to be continues Carolina in in Station Pipeline West proceed planned well. construction and for to a to Coast in near pipeline construction coming plan in mainline Power in service Cycle sediment Header the on for future. X,XXX-megawatt notice and

expected of and and project year. As complete. and first XX% late set, operations regulation nearly Greensville primary complete is of metering All line are flushing complete. equipment achieve gas quarter this is commissioning. is natural stations major this was commercial to $X.X the achieve schedule combustion March and billion The final turbines on awaiting fire is and to XX, the

to Connecticut Power with pleased procurement Connecticut's We proceed to energy, for determined February clean price resource. economic stabilizing to they power, will existing determining such proceeding including new it for reduction, for X, continues attributes forward judged at-risk progress. nuclear On solicitation regulators that that request bid energy impacts are et the submitting Station, is bids and Dominion RFP fuel the September. meet policy includes has carbon-free and cetera. meet while X, in are a due will goals carbon as in that an a to and be participate bid looks expected responses issued environmental by Connecticut goals. designation be to to Connecticut also mean help public competitive on Millstone opportunity resources, Millstone Millstone's Millstone's and would plans and at-risk its Simultaneously, revenue. That its that which be diversity, May will designation, to non-price

a SCANA operative to with Corporation. want Finally, make our I few comments on merger

SCANA project. a we announced our in you where cost offer X.XXX agreement Included As its nuclear the reduce January the for in development and would common know, was bill exchange which to X, substantially of Dominion on upfront shares share. stock would proposal ongoing payments for the abandoned customers each reductions,

approval clearance and We from Trade have Public Commission. from received Service the Commission the Georgia Federal

Carolina approval approval this utility still needs expect We SCANA shareholder Carolina. state summer the in from commissions North and the South and

Review and explain to legislative Base support who the Load very for have Recent our to Act. our one study result lawmakers South changes in in of Carolina $XX.X could as proposal indicated temporary state South participated our indicates by within merger. a considering billion strong economists proposal that than are hearings We Carolina's a to polling see recent leading of the more economic increased the state, output

We this be optimistic our complete by the viewed regulators, are and that we later year. will transaction favorably can proposal

first the is County quarter. delivered on Greensville and commercial to on performance Construction record-setting is in of operations. the safety budget. Cove So and has through our business time operating summarize, Point project

full project anticipate throughout project of Atlantic Pipeline this and later portions Supply full construction Coast We construction the have begun the entire and on Header spring.

to year. track in next on service are We be late

plan, and alternative we with year. this complete earnings And that our meet will later our SCANA growth expect to objectives. financing our share with per credit are We targets we merger optimistic

annually of our we With depending be we that and the XXXX. will with in policy dividend expected between Finally, that, XXXX have reconfirm and rate reviewed X% at upon is market to to growth happy our XX% XXXX time. XX% increase assumptions questions. your our board and MLP The dividend viability take its growth the to in

Operator

[Operator first Thank floor comes Pourreza time, Our will with this we from questions. question you. Partners. the Guggenheim for Instructions] open At Shar

Shar Pourreza

Good guys. Hey. morning,

Thomas Farrell

Good morning.

Shar Pourreza

it's growth might that end XXXX. the The the MLP whether by Obviously, dividend good on see stimulated a book through maintained broken language, rate or just wideband. So markets your you've XXXX somewhat is to just the updated of not. support

this cash beyond it be should So within what of sort importantly, outer have since years of flow why especially drives even dividend the you And even X%, bottom the million $XXX in more so at able in in language to the band? at maintain XXXX? about change it’s sort end savings, the

Mark McGettrick

Mark. but we're long-term. to going that We the is And XXXX, be. open to that beyond have where in prepared to maintain confident be sure This our we MLP remarks can that's Sure. right quite as now not be markets said it going we us to

So we that lower those wanted then be kind XXXX we into to flows it'll without the MLP market. market it access back for and out end at with high in cash will range range, put MLP we would a cannot of be that end If the of came range. that of drift

would we MLP not After but that cautious in next plenty we payout we the Because why that can elevated want you us, get basis. for XX% if Now to to about further equity are XXXX $XXX two support be it number drops to XXXX? a do say our at any if access MLP cash our years. that in big we we current would higher it's dividend keep without have the long-term of million, for assets on the flow it's an and ratio

Shar Pourreza

back has lastly, leverage level Point keeping have of FERC at here, some sort more updated Coast in X just clearly Atlantic and have material then And and Pipeline an you impact ruling at your that sort equity D the takes if sales, Point, highlight of levering incremental earnings, be some is at opportunities. Okay. you Cove And renewables. Cove pushes growth some you like asset Got plan and which X, – opportunities there should the includes issuances do end, or like very it. so you stronger That’s no but helpful. clearly the

this earnings to of seems think XXXX? sort to would runway? your you at a your midpoint beyond even good guide given bottom about end And the what continuing long-term comfortable you just sort of drive of to what actually So Are be somewhat CAGR.

Mark McGettrick

we always put the always Shar, comfortable a to but get midpoint. midpoint. are out, to the question range we target guiding we We I the we as think always say

I the think raise to from that could to depending we you to drive structure optimize on upper don't which decade back well by at point, in MLP that we're markets that, we us that bottom a may flows going And would the the lower have weather-sensitive parent. the will haven’t heard and cash million. the all and $XXX yet, investors could do be the we what end to the end; Cove open, are. or end the and been still of good parent. us But take company. utilize EBITDA Point's the were end utilize where But MLP of the we if an do incremental to is not That's

We look of to like as to as we lot middle, the we're a and have well. we'll comfortable do with evaluate. we're work this year able we meeting feel again, that toward very levers So going that

Shar Pourreza

Terrific result today. congrats and guys, on a

Thomas Farrell

Thank you.

Operator

you. Thank

ISI. with Greg Gordon from Evercore Our next question comes

Greg Gordon

morning guys. Good Thanks.

Thomas Farrell

morning, Greg. Good

Greg Gordon

process can expecting where year? outcomes proceeds like cumulative Great with achieved we agree, a on to come whether sales? think that we come expectations point for looking do six you of total you've next to think right to getting to expecting we good timeframe in – a takes really the you I What asset be the a When be conclusion is you performance. reasonable feel us you you a months, should should a quarter, when steps? back Are at and do us

Mark McGettrick

but the may around to I would We clear on before the of that. target by quarter things we get some that, that. we'll clear a think, real up that year, I few clarity have us end fourth Greg, for have a view can

look big we're not If really you number targeting it's bar at sales. that the chart, in that a asset

plan, of the the what's In to done terms it Point. at Cove in left majority financing be is asset alternative the debt at of

end investment-grade that put to probably asset $X.X billion expect us And billion $X it That $X.X a to this We that strongly that. would of maybe only billion and asset $X between billion keep towards on range. leaves high year, sales.

a very the it's of mentioned Racer. had we And we're reasonable, specifically we a So is number. assets conservative Blue one And evaluating. number we think have

say, market. screening are their a although Now, we don't value we number the I we of will believe can in assets, get

far, assets assets. in a out But type we not to we've heard there'll have so on based the interest lot We’re what going sell be there. of of the

Greg Gordon

and that's saying which your debt, to debt look asset Great, that Cove the and to chart, are need targets. credit two you're an holdco so debt as helpful, incremental transaction, metric, a actually parent of have percentage it's certain get when thank Point through quickly simple. your you. very But you and I then There's billion things $X.X proceeds. meet of at you achieved elegant there sale clearly achieve that fairly bar just the percentage FFO-to-debt to is One of you

you an FFO-to-debt the year sale the you the that did equity cuts beginning total that $X.X financing of billion activity plus billion that announced of your $X.X of is goal that the beginning that asset the a I gets you plus plus did that credit that to at year was lot, for forward Is CapEx fair? know achieves through that perspective? but of from at saying you're XXX the the So you – metric the the sales

Mark McGettrick

put in period this $X.X need billion. but the that only wouldn't the a to our it hang range you to is targets. we that I need year, billion. I yes, Doesn't time. execute billion of to But period execute on a done give to I'll certainly Yes, credit $X be over we $X.X to caveat on meet think I'd of have

Greg Gordon

in the about of gun here, know a there you could that be DM is recover, not but would math, your least DM, at this contemplate for time terms both because bad way transaction market by be in outcome that deliberate here I consolidation in then shareholders. side not is my and on necessarily think MLP you to with the I’m definitively the trying valuation, jumping a And if

Thomas Farrell

Greg, this is to a see Tom. options itself of DM. variety There's just out. We're plays going with this how

be no There's lot on But You mentioned pursuing that rush. them others in about FERC one would a and option, how we're think that. itself an what We pushback just are that. outcome. out. see did was it been We'll unreasonable plays of

see. We consider have going we'll of for goals plenty DM options as go give meet distribution out, of cash the least and we'll at then play to it to time – to and we available now, so our at along. We're

Greg Gordon

very Have Thank much. good guys day. a Okay. you,

Thomas Farrell

Thank you.

Operator

Thank you.

question Steve next Fleishman from Research. Our comes with Wolfe

Steve Fleishman

Or we'll outcomes year-end, Hi, that kind sales, money that the actually asset of getting then? Cove the is of timing coming good by plan in? so morning. by The assets for Point sale kind is is know is of what

Mark McGettrick

ahead I early what decide may might think with, XXXX. spill have Steve, outcomes, some move probably some assets have over and into depending you you'll that to we

Steve Fleishman

complete take you guess? then or any go what stabilize to the Do rating sense stuff? agencies outlook, to need get that? negative And to Or I of it Okay. the would credit that off

Mark McGettrick

extent a been the and we that opinion, of looked other exactly been we've want know have various there impacted along our in what agencies. one transparent companies are address there at have my the reform on I with the your of say, in metrics. been we very own, out speak would, and think really at I taxes. to is in and process. They them met times into tax our to credit that will We've believe agencies, by due put out you looking work what the don't have execution agencies have on but with shortfall And announced plan to most number the plans is, plans Steve, they've we to ranges opinion, others again as on we for that the but aggressive have, to I the credit

own most it they or again, plan it's Moody, of speed probably amount, you in we've done, but any what have of sales be reduction that. think comments, their aggressive on I So Fitch, announced, of what equity if CapEx terms there. out sure, in company all or But S&P, look the I'm not whether we've asset only at

Steve Fleishman

and other scenarios to X% case kind of you're the make base Okay Or are using? are not these now Is is you're scenarios X% one that those question? on the saying DM keep rate. X% sense X%, then asset clarification DM, growth all that a that you different and there sales, of like taking you in to

Mark McGettrick

scenarios Yes, we on have run multiple it.

were of on expecting that's put the area. the that in give assumptions valuation. range want sales asset kind And have alternative terms we why of We in to we to out this plan everybody chart bar

MLP. by ourselves a that down road. same lot to the an the replace the the $X us plan have It built of billion to the alternative billion. financing quickly in on have But range we We needs do gets flexibility the also MLP addressing $X includes

have we the think but of I a are not going market we MLP up. again wait for options So lot open

with and that We it. immediately, wanted around to come that's amount plan of are going why address the with a we to detail out and fair alternative

Steve Fleishman

Okay. Thank you.

Operator

Thank you.

comes Our Jeremy with Tonet JPMorgan. next from question

Jeremy Tonet

morning. Good

bit regards that till thinking point? FERC hit pressure matter we of trying distribution strategy into that, at of turn should Just we offset be not X.X, that any a Just to wanted material coverage kind the impact it you and to about going eventual to in point? could would With see can be to read holes DM you any at here. covers the very of Or that more increasing think is kind here? if what that there's drop-downs to

Mark McGettrick

board, to at our course, the Well, to go we're distribution in going and recommend decision, said ahead the board's level. as and increases continue we of remarks, ahead quarterly prepared it's X%

put a As I conditions. anything long take else current We decision do have time and year. I to we this bit But XXXX into to right as frame of on we don't coverage FERC with not to in an now, all that's is above evaluate think for And want the DM – market anticipate, one-time. that. rehearing. move ahead dropping made it'll requests the time financing alternate

reach And where next so share be to fair a drop that go MLP a the but not going at the day-one. parent it's the for I DM probably been of would the to is DM cost valuation design we open opinion, will has like FERC price market would of ahead say reversal I which something in to market lower think to have it in and a just we a or from see drop with clarification recovery to and level price capital, DM's might makes year. sense of earliest that

our opens is to long to this we comes and that as as patient, And so that distribution out of can clarity this hope FERC. the as back market be on pay approach up some

Jeremy Tonet

helpful. from curious timeline just there's can guess affect how – Thanks. feel change, question, FERC no you very thoughts strategy some new there? long at was as last take just And if it's Any want until far as like far That’s if you provide as don't resolution things you but then I if one difficult I could. one as a I to DM?

Thomas Farrell

at Not We're happens just few going what to months at it. here, a I’m not put going next on see this time. to least. timeframe

Jeremy Tonet

sense. very you Thank makes much. That

Thomas Farrell

you. Thank

Operator

Thank you.

with Storozynski next question comes Our Macquarie. from Angie

Angie Storozynski

you. Thank

DM, on understand. I so So continuing that just

into cash debt, project drop this drop would the drop to impact be your market add cash ability from distributable the this – Point, MLP this asset that assuming ability you it the MLP it you be issue to mean, flow to the how if I DM? because of into that asset would limiting added a debt only that that would simply is it flow would potential debt you So Is recovers? Cove amortizing? the

Mark McGettrick

give around expand a I’ll Jim ahead to you him let have that drop at Angie, drop on go limit quick would that. me today, on and and is and that it is and we ahead answer financing our and Cove DM. But won't here go ability how Chapman the

James Chapman

Good Jim. Angie. Hey, morning. It’s

more of there's perspective, a billion comes is much end structure for amortization seem quantum, the might terms for clarify debt a Cove. as Just $X $X.X ability or I we project And limitations like the financing with you that we when suggesting flexibility very a it transferability that we near-term. its or kind try Mark or to traditional like in bit, prepay need need capacity just mentioned, had significant true to that be financing have for to kind from up the at to not. terms. little things Cove finance right with And But our billion now capacity, a could in deal modest, of that if debt of of great net think expect

into So the financing Lots we plan. in in just don’t flexibility see on current constraint being of a drops potential DM. future any way plan our

Angie Storozynski

or either don't Okay. Why assets? of your that level assets portion following are convinced be so that just these is of a My rates, DM material have determents don't other Why the need give to going and doesn’t you reduction the you other versus the DM state EBITDA this or – a once actions into cash some zero? to assets taxation currently holds swap And Cove in question is Point these FERC these the would flow that housed, pipeline in issue. not take to not future. just

Mark McGettrick

of Angie, versus guess fairly the up a XX% their that’s could will intent as do not be are We but that's If they market. we springboard broad want structure the other brushed, by be they is, that long-term, look change for was But that. there that It to be and what to C have we on and requested our to of do policy and have be for that, going obviously whole to the to get incentives. and there’s interest what and is this don't lot of a good DM change. and FERC been provide and we at. only I gross really to ahead seems MLP Corp clarified a supported like are is will you some clarity. question. D – a MLP approach pure that. patient think that We go for If wait something to and going assets

Angie Storozynski

CAGR, in that the is uplift Okay. starting X% And X% Connecticut is midpoint And range? the the question, to included point? last the of what my

Mark McGettrick

it through new impacts that Millstone, growth have might we The the auction or starting that in we that did so put as the that option. Millstone the we some Millstone include point put range is said But currently, benefits XXXX. I out the market it in and XXXX accrue a of XXXX. between XXXX in when curve does ago in any year out not of there. or used when I range middle think, We maybe

Angie Storozynski

thank Okay, you.

Operator

Thank you.

with comes question Weinstein Michael from next Suisse. Our Credit

Michael Weinstein

guys. Hi,

Thomas Farrell

morning. Good

Michael Weinstein

remain one-time How the at morning. DM you as the make X% think to is it long saying is – going grow we then through quarter, that to above per XXXX that – or go you be – have Good go you point the that and are metric decision? at it'll do

Mark McGettrick

XXXX. No, could performance. not this Michael, go through go with through current Mark. is It quarters it's to going several certainly

window We cetera. for think to a But extend X%. us able I to in front in are time longer. we them several will much at it's et of reasonable support through least it's longer address as maybe But takes CapEx I and it changes evaluating quarters a that request the gives through, to a how than maintenance say, that timing, window shorter be

Michael Weinstein

then and is I $X you or billion more mentioned there billion. a get that that other equity might the some $X.X that you proceeds be of think between asset sale and Is the by Gotcha, primarily could factor? range driven also

Mark McGettrick

I Okay, comment. an I'm I sorry if equity that’s said it. not misspoke.

sometime DRIP potentially. $X.X would with billion besides reduce that was billion – is bring and back year $X done referenced and debt we cash Our that value and asset into throughout with next equity to from year this sales

Michael Weinstein

you. thank Okay,

Operator

you. Thank

from comes question with Praful Citigroup. next Our Mehta

Praful Mehta

guys. Hi,

Thomas Farrell

morning. Good

Praful Mehta

Good morning.

on from the going So a to thing, around DM. the to just bit flexibility I the but guess trying market paying the understand and little you're question keep to waiting DM it with same a for up recover. like looks Again perspective, flexibility

some So, would the up Jim project to around that keep brought for the financing the of in cost. options project terms for of flexibility financing obviously, example, cost a bit little

and that to is not an question to worth sooner? going thing, different of understand what that much, if So the flexibility DM it to kind first cost earlier are keeping DM back is it D now this cost around why buy the keep or elements just brought would flexibility like up, right wanted

Mark McGettrick

great Praful, is the financing parent mean to have. Well, bringing flexibility always see cash this I in back value Mark. we of the MLP

I are think Dominion starting Energy shareholders the to appreciate that of years. over

that So to to keep us it's worth something moving.

we there's stay structure the reasonable long unitholders it can if a price. to Dominion owe at also DM that reasonable that with the equity reasonable we as a and as to chance rebound We and at can will Midstream market a place here and level

are the the cost minimal, of flows Now very D in financing terms to we same. because be is cash going believe, of the

You putting it let you to it get asset within may better financing by well before were Corp. to C travel. initially

So at us wait being we see don't and we incremental see that it going as there. just material on until cost allows to flexibility DM to all, what's happen

Praful Mehta

fair Gotcha, enough.

line needed, are kind held strong Just and offer? change switching this out around playing our that do concessions to any Do or that you for is you we at all? do room see any from the kind you needed SCANA, to flexibility see how of think it concessions Do don’t and you've of you see quickly here?

Mark McGettrick

so by the political through in and finished No regulatory year, and that’s next through of made Fridays big, have political, with the now. going sphere lots – Friday that going process. forth questions it's process – from – result regulatory in but been has two going now We'll political November. sphere, there a the flexibility. far, We We're typical will can December. and No. our offer, back adjourn having that hearing They're they also for the they scheduled

our offer. So that's what we're going to proceed that way. We made

Praful Mehta

on is least around the forward And timing from of the get see, constructive done terms in reports of it and path pretty financial sounds just the like what’s Millstone? I guess Millstone, at Any finally get That’s that pretty kind benefits to clear. Millstone. progress you all

Thomas Farrell

and Koonce that answer here Paul you. he for is will

Paul Koonce

that May. The September. and would what if determine you an that and by Thanks do, showed concurrent comments bid plan morning. grid report also DEEP be Good to has been schedule They resource accept were that at can that, it will which include can fuel can with you're as They non-price And pursue Tom you you have if that into designation like in will risk PURA his that laid carbon, the is to a means bids Millstone They then RFPs for reliability. have which cost – produced retire. issued diversity, zero mentioned then PURA. that your through you factors DEEP if a we consumers report question. [Leviton] the in out

So the to of I recognition Millstone. think there is value some

that play out is to really September by year with between approved So now been and all supposed bids end.

Praful Mehta

Thanks Great. so much guys.

Operator

you. Thank

Stephen Byrd Morgan Stanley. Our question next from comes with

Stephen Byrd

good Hi, morning.

Thomas Farrell

morning, Steve. Good

Stephen Byrd

Cove on Congratulations Point.

like terms question last you and Just us at-risk be actually following used to process the up the that the information on Connecticut Could to the criteria designation? of designation, looks remind process. what get on submitted in that just on

Thomas Farrell

confidential in a a validated that confidential proceeding advocate that participate conclude so it between Sure. the agencies and the cost us once be into And have DEEP proceeding. in made will Dominion consumer determination provide they They a be conclude will and that and of really it applicants, it it state agreed have and be will will and determined taken will case They to state information, also and whether that up that PURA. a be account. other the agencies factors that their they invited asset then But non-price be have proceeding risk. the

Stephen Byrd

core of I’m your Virginia? of in just if and the just just further state, That’s’ me And the the you in your the potential as to growth needs in about just thoughts plans given shifting given state curious capital legislation for we mind in state terms just wouldn't helpful. then expenditures think Virginia, additional giving

Thomas Farrell

projects session our large I we've programmatic was the by programs. Well, to announced about from more enacted last legislation that moving And plans supports that this program. Assembly fall General the think

that program. So I real don't no changes there's – to

of it. see decade. supportive think We think I said billion that. is the $X.X next through we year changes at growth average in for don’t capital a We in the legislation least on any to Virginia a

Stephen Byrd

be other generation to out? of additive you out. medium that so any above, for above laid be whether already There plan Understood, not over plans over words, and sort term the laid familiar the other had just in tax that that near and incremental you've with capital in it could is or resource the

Mark McGettrick

to we It’s see. more have planning possible, we go along but as

Stephen Byrd

Okay, have. very you. I That’s Thank good. all

Mark McGettrick

Thank you.

Operator

you. Thank

comes from question final Bank. Our Jonathan with Arnold Deutsche

Jonathan Arnold

morning guys. Good

Mark McGettrick

Good morning.

Jonathan Arnold

be want rate? ask to sort I Dominion ratio specific in on scenarios? of DM the comments the with mind raising on in Do range Could you and you and about would growth without term at have longer dividend a and just the capital the payout

Mark McGettrick

Jonathan. Hey

mid we DM As we the before we were DM in as so forward. win or XXs laid with out

with comfortable We’re pretty that.

over will think mid be XXs. the next couple XXXX XXXX, years, in I to a low

to the more come MLP, was XX we that think comfortable I of we don't what We’re don't mid-XXs. you MLP still than to with we that not the bring time, non-regulated we our have to with happens any long-term. again, to flows the But that, reasonable get and DM. with that would MLP payout want tell thing have burden low if and would the out view. premised that, I that would next higher of access be over to from on XX% more probably couple cash think anything this that we assets math years down ratio. dividend And utility coming with much In will incremental depending or market, that rate payout than regulated like in the of entities level

will We that down. bring to start

Jonathan Arnold

secondly, sort of Great, inside be some was XXXX things $X in the coming specifically you thank going back Have us are of XXXX. can into now just And out and you and made call, where you then that’s what the non-growth give identifying you. on the talked last billion types on this of there? that progress CapEx,

Mark McGettrick

what of looks like reduction XX portion It that somewhat building make in we us. it it it. and near-term come of We are we’ve started of It out capital. XXXX out support reprioritization done XX call much and It like for maintenance capital a pretty between we XX will come identifying earning provide -XX maybe execute and as a XX, at things funds, that. of XX for will will to general looked don’t which areas already come of capital,

So it’s I across something think pretty it we’re with. comfortable board, the

our good good and a very service good is in shape, service good shape shape. very in our are a in reliabilities facility in service shape Our our and liabilities reliabilities and

and So for of maintenance I think short-term some fine can have we two years. this be a capital pause in

Jonathan Arnold

perfect. Okay, great. That’s Thank you, Mark.

Mark McGettrick

Thank you, Jonathan.

Operator

does This you. Thank conclude morning's conference. this

disconnect of your the rest may enjoy and You lines day. your

Dominion Energy (D) 27 Apr 182017 Q1 Earnings call transcript