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Dominion Energy(D) - 2024 Q4 - Annual Report
DDominion Energy(D)2025-02-27 13:17
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Financial Performance - Dominion Energy reported a total revenue of 13.5billionforthefiscalyear,reflectinga513.5 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,a103.10, 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 5billion[7].−DominionEnergy′scapitalexpendituresfortheyearwereapproximately5 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 41billioninspendingtoconstructnewgenerationcapacityandupgradeinfrastructure[51].RenewableEnergyandSustainability−DominionEnergyistransitioningtoacleanerenergyfuture,withsignificantinvestmentsplannedinutility−scalesolarandtheCVOWCommercialProject[23].−Thecompanyisactivelypursuingpartnershipsfornewtechnologydevelopmentsinenergystorageandsmartgridsolutions[7].−DominionEnergyaimstoachievenetzerocarbonandmethaneemissionsby2050,focusingonexpandingwind,solargeneration,andenergystorage[180].−DominionEnergyhasreduceddirectScope1CO2equivalentcarbonandmethaneemissionsby5241 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 330millionin2025[204].−Thecompanyisfocusedoncompliancewithfederalandstateenvironmentallawsthroughcapitalprojectsatitselectricgeneratingstations[17].−Thecompanyplanstoupgradeitsgasandelectrictransmissionanddistributionnetworkstomeetenvironmentalstandards[190].StrategicPartnershipsandAcquisitions−Thecompanyhasenteredintoagreementstosellallregulatedgasdistributionoperations,exceptforDESC′s,toEnbridge[23].−DominionEnergycompletedtheEastOhioTransactionwithEnbridgefor330 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 2.3billioninlong−termdebt[30].−TheQuestarGasTransactionwithEnbridgewascompletedfor2.3 billion in long-term debt[30]. - The Questar Gas Transaction with Enbridge was completed for 3.0 billion in cash and 1.3billioninassumedlong−termdebt[30].−ThePSNCTransactionwithEnbridgewasfinalizedfor1.3 billion in assumed long-term debt[30]. - The PSNC Transaction with Enbridge was finalized for 2.0 billion in cash and 1.3billioninassumedlong−termdebt[31].−TheSCANACombinationacquisitionwascompletedonJanuary1,2019,enhancingthecompany′smarketpositionandoperationalcapabilities[17].OperationalEfficiencyandTechnologyDevelopment−DominionEnergyisinvestingapproximately1.3 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 Kbillion,focusingoninfrastructureupgradesandexpansionprojects[16].−Recentacquisitionsareanticipatedtoenhanceoperationalefficiency,withexpectedcostsynergiesofK 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].