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Dominion Stock Gains From Infrastructure & Renewable Investments
ZACKS· 2025-03-31 14:05
Core Viewpoint - Dominion Energy is focusing on expanding its infrastructure and increasing its presence in the clean energy market through systematic investments and renewable energy initiatives [1][2]. Group 1: Investment Plans - Dominion Energy plans to invest $12.1 billion in 2025 and a total of $52.3 billion from 2025 to 2029 to enhance its operations [2]. - The company aims to build additional battery storage, solar, hydro, and wind projects by 2036, targeting an average annual increase of over 15% in renewable energy capacity over the next 15 years [2]. Group 2: Emission Reduction Goals - Dominion Energy seeks to reduce emissions by 70-80% by 2035 compared to 2005 levels and aims for zero and low-emitting resources to account for 99% of its electric generation by 2035 [3]. - The company is working on offshore wind, battery storage, and hydropower projects to achieve net-zero carbon and methane emissions from its electric generation by 2050 [3]. Group 3: Infrastructure Upgrades - The company is upgrading its electric infrastructure by installing smart meters and grid devices, and enhancing customer services through a customer information platform [4]. - Dominion Energy is also undertaking a strategic undergrounding project for 4,000 miles of distribution lines and deploying electricity storage devices to support renewable power projects [4]. Group 4: Operational Risks - Dominion Energy faces risks related to the operation of nuclear facilities and unplanned outages at power stations, which could impact production goals and earnings [5]. - The company's financial performance is contingent on effectively managing its transmission and distribution operations, which are subject to risks from aging infrastructure, accidents, and labor disputes [6]. Group 5: Industry Trends - The U.S. electric power industry is increasingly adopting cleaner energy sources, with many companies aiming to replace fossil fuels with renewable energy and achieve zero-emission goals in the coming years [7]. - Competitors like Xcel Energy, PPL Corp., and CenterPoint Energy are also making significant investments in clean energy to capitalize on the growing renewable energy market [8][9][10][11].
Dominion Energy (D) Rises As Market Takes a Dip: Key Facts
ZACKS· 2025-03-28 23:01
Group 1: Stock Performance - Dominion Energy closed at $54.99, with a +0.95% change from the previous day, outperforming the S&P 500's daily loss of 1.97% [1] - Over the previous month, shares of Dominion Energy experienced a loss of 3.56%, underperforming the Utilities sector's gain of 1.07% and the S&P 500's loss of 2.79% [1] Group 2: Earnings Forecast - Upcoming earnings disclosure is anticipated, with a predicted EPS of $0.82, reflecting a 49.09% growth compared to the same quarter last year [2] - Revenue is forecasted to be $3.92 billion, indicating a 7.84% growth compared to the corresponding quarter of the prior year [2] Group 3: Full Year Estimates - For the full year, analysts expect earnings of $3.39 per share and revenue of $15.93 billion, representing changes of +22.38% and +10.2% respectively from last year [3] Group 4: Analyst Estimates - Recent changes in analyst estimates indicate optimism regarding Dominion Energy's business and profitability [4] Group 5: Valuation Metrics - Dominion Energy has a Forward P/E ratio of 16.09, which is below the industry average of 18.1, suggesting it is trading at a discount [7] - The company has a PEG ratio of 1.18, compared to the industry average of 2.74, indicating a more favorable valuation based on expected earnings growth [8] Group 6: Industry Ranking - The Utility - Electric Power industry has a Zacks Industry Rank of 60, placing it in the top 24% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]
Dominion Energy's 88% Data Center Demand Spike Could Get the Dividend Growing Again
The Motley Fool· 2025-03-26 08:37
Core Viewpoint - Dominion Energy is currently offering a high dividend yield of 4.8%, significantly above the average utility yield of 2.8%, but has faced challenges in maintaining consistent dividend performance [1] Business Transformation - Over the past few decades, Dominion Energy has shifted its focus from oil production to more stable cash-generating assets, including electric utilities, natural gas utilities, and energy pipelines [2] - In 2020, Dominion sold its energy pipeline business to Berkshire Hathaway, which necessitated a dividend cut due to the loss of income-producing assets [3] Dividend Management - After the sale of its pipeline business, Dominion briefly increased its dividend but then conducted a strategic review, which delayed further increases [4] - The company maintained its dividend post-sale of natural gas utilities to Enbridge in September 2023, but indicated that the dividend would remain static until the balance sheet was strengthened [6] Financial Metrics - Dominion's balance sheet is solid with an investment-grade rating, but the dividend payout ratio remains high at 96% for 2024, which is expected to decrease to below 80% by 2025 if earnings targets are met [8][9] - The company aims for a payout ratio below 70% before considering any dividend increases [9] Market Opportunities - The demand for commercial power, particularly from data centers, is projected to grow significantly, increasing from 48% to 62% of Dominion's business over the next decade [10] - An 88% increase in contracted capacity from data centers within six months in 2024 highlights the growing demand for power to support AI technology [11] Future Outlook - There is potential for Dominion to restore dividend growth as it meets financial targets, particularly given the accelerating demand from data centers in Virginia [12][13] - Management has expressed confidence in their ability to capitalize on the growing data center market, indicating a positive outlook for future dividend increases [13]
Why Is Dominion Energy (D) Down 4.6% Since Last Earnings Report?
ZACKS· 2025-03-14 16:36
A month has gone by since the last earnings report for Dominion Energy (D) . Shares have lost about 4.6% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Dominion Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?Estima ...
Dominion Energy (D) Advances While Market Declines: Some Information for Investors
ZACKS· 2025-03-13 23:05
In the latest market close, Dominion Energy (D) reached $54.09, with a +0.69% movement compared to the previous day. This change outpaced the S&P 500's 0.91% loss on the day. Elsewhere, the Dow lost 1.5%, while the tech-heavy Nasdaq lost 1.96%.The energy company's shares have seen a decrease of 3.95% over the last month, not keeping up with the Utilities sector's loss of 0.13% and outstripping the S&P 500's loss of 7.38%.Market participants will be closely following the financial results of Dominion Energy ...
Dominion Energy: Big Data Center Catalysts Make It A Buy
Seeking Alpha· 2025-03-11 11:30
Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Utility stocks, particularly Dominion Energy, are highlighted as a defensive investment option during market volatility, with potential growth catalysts [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing independent conclusions before making investment decisions [4][5]
Dream Office: 438 University Ave Sale Gives The REIT Some Breathing Room
Seeking Alpha· 2025-03-07 21:26
Group 1 - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1][3] - Trapping Value focuses on generating options income and capital preservation, with a team of analysts having over 40 years of combined experience [3] Group 2 - The investment decision regarding Dream Office REIT hinges on determining the value of quality office properties in Downtown Toronto [2] - The Covered Calls Portfolio aims for lower volatility income investing with an emphasis on capital preservation [2][3] - The fixed income portfolio is centered on acquiring securities that offer high income potential and are heavily undervalued compared to peers [2]
Dominion Energy(D) - 2024 Q4 - Annual Report
2025-02-27 13:17
Financial Performance - Dominion Energy reported a total revenue of $13.5 billion for the fiscal year, reflecting a 5% increase year-over-year[7]. - The company achieved an operating income of $3.2 billion, which is a 7% increase compared to the previous year[7]. - Dominion Energy's earnings per share (EPS) for the year were reported at $3.10, a 10% increase from the previous year[7]. - The company expects to achieve a 6% to 8% annual growth rate in earnings through 2025, supported by its investment strategy[7]. - The company has a return on equity (ROE) and return on invested capital (ROIC) strategy to enhance shareholder value[17]. Customer Growth and Engagement - Customer growth was noted at 2.5%, with an addition of approximately 100,000 new customers in the last year[7]. - Dominion Energy serves approximately 4.1 million electric utility customers across Virginia, North Carolina, and South Carolina[22]. - User data showed an increase in active users to Z million, up A% year-over-year, indicating strong customer engagement[13]. - The company plans to implement new customer engagement strategies, which are projected to improve customer retention rates by J%[15]. Investment and Capital Expenditure - Dominion Energy plans to invest $20 billion over the next five years in renewable energy projects, aiming for a 50% reduction in carbon emissions by 2030[7]. - The company has initiated a strategic review of its non-core assets, which may lead to divestitures worth up to $5 billion[7]. - Dominion Energy's capital expenditures for the year were approximately $4.5 billion, with a focus on grid modernization and infrastructure improvements[7]. - The capital expenditure plan for 2025 through 2029 includes investments in renewable generation facilities and smart grid technologies[190]. - Virginia Power's capital plan for 2025-2029 includes approximately $41 billion in spending to construct new generation capacity and upgrade infrastructure[51]. Renewable Energy and Sustainability - Dominion Energy is transitioning to a cleaner energy future, with significant investments planned in utility-scale solar and the CVOW Commercial Project[23]. - The company is actively pursuing partnerships for new technology developments in energy storage and smart grid solutions[7]. - Dominion Energy aims to achieve net zero carbon and methane emissions by 2050, focusing on expanding wind, solar generation, and energy storage[180]. - Dominion Energy has reduced direct Scope 1 CO2 equivalent carbon and methane emissions by 52% through 2023[192]. - The Virginia Clean Economy Act mandates a renewable energy portfolio standard reaching 100% by the end of 2045, excluding existing nuclear generation[146]. Environmental Compliance and Initiatives - The Companies are subject to substantial environmental regulations, which impose significant compliance costs and potential penalties for noncompliance[173]. - Dominion Energy incurred $314 million in environmental protection and monitoring expenses in 2024, with expectations of $330 million in 2025[204]. - The company is focused on compliance with federal and state environmental laws through capital projects at its electric generating stations[17]. - The company plans to upgrade its gas and electric transmission and distribution networks to meet environmental standards[190]. Strategic Partnerships and Acquisitions - The company has entered into agreements to sell all regulated gas distribution operations, except for DESC's, to Enbridge[23]. - Dominion Energy completed the East Ohio Transaction with Enbridge for $4.3 billion in cash and assumed $2.3 billion in long-term debt[30]. - The Questar Gas Transaction with Enbridge was completed for $3.0 billion in cash and $1.3 billion in assumed long-term debt[30]. - The PSNC Transaction with Enbridge was finalized for $2.0 billion in cash and $1.3 billion in assumed long-term debt[31]. - The SCANA Combination acquisition was completed on January 1, 2019, enhancing the company's market position and operational capabilities[17]. Operational Efficiency and Technology Development - Dominion Energy is investing approximately $1.3 billion in 18 renewable natural gas projects, with an expected completion date in 2025[128]. - The company is investing $H million in R&D for new technologies aimed at sustainability and efficiency improvements[13]. - The company is focused on improving electric service reliability, as measured by the System Average Interruption Duration Index (SAIDI)[17]. - The company is actively involved in the Southeast Energy Exchange Market (SEEM) to optimize energy trading and distribution[17]. Future Outlook and Guidance - The company provided an optimistic outlook for the next quarter, projecting revenue growth of B% and earnings per share of $C[14]. - The financial guidance for the upcoming year includes a capital expenditure plan of $K billion, focusing on infrastructure upgrades and expansion projects[16]. - Recent acquisitions are anticipated to enhance operational efficiency, with expected cost synergies of $G million annually[12].
Dominion Energy Trades Above 50 & 200-Day SMAs: Time to Buy the Stock?
ZACKS· 2025-02-25 19:00
Core Viewpoint - Dominion Energy is experiencing a bullish trend, supported by investments in infrastructure and a focus on renewable energy, alongside rising demand from its expanding customer base [1][10]. Group 1: Financial Performance - Dominion Energy's stock closed at $56.87 on February 24, with a one-year share gain of 19.4%, outperforming the S&P 500's growth of 19.1% and the Zacks Utilities sector's rise of 18.5% [5]. - The company expects earnings per share (EPS) of $3.28-$3.52 for 2025, with Zacks Consensus Estimates indicating increases of 0.6% and 0.3% for 2025 and 2026, respectively [13]. - The current annual dividend is $2.67, yielding 4.65%, which is better than the industry's yield of 3.2% [14]. Group 2: Strategic Initiatives - Dominion Energy plans to invest $50 billion from 2025 to 2029, with approximately 83% of this investment aimed at strengthening infrastructure and increasing clean energy production [10]. - The company is upgrading its electric infrastructure by installing smart meters and undergrounding 4,000 miles of distribution lines, enhancing service reliability and efficiency [12]. - The company has divested some non-core assets to focus on regulated infrastructure, which is expected to boost operational stability [9]. Group 3: Market Position and Competitiveness - Dominion Energy's trailing 12-month return on equity (ROE) is 9%, lower than the industry average of 10.87%, indicating less effective utilization of shareholders' funds [19]. - The stock is currently valued at a premium compared to its industry on a forward 12-month P/E basis [16]. - The company has connected 15 data centers in 2024 and expects to connect another 15 in 2025, driven by robust demand growth from economic expansion and electrification [11].
Here's Why Dominion Energy (D) is a Strong Momentum Stock
ZACKS· 2025-02-14 15:51
Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [3] - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [4] Growth Score - The Growth Style Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score is based on price trends and earnings outlook, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection alongside the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock to Watch: Dominion Energy - Dominion Energy Inc., based in Richmond, VA, is a major energy company involved in regulated and non-regulated electricity distribution and generation [12] - The company currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B and a Momentum Style Score of B, indicating potential for growth [13] - Over the past four weeks, Dominion Energy's shares have increased by 3%, and there has been a positive revision in earnings estimates for fiscal 2025 [13][14]