Dominion Energy(D) - 2024 Q2 - Quarterly Results

Earnings and Guidance Summary Dominion Energy reported Q2 2024 operating earnings of $0.65 per share, a significant increase, and reaffirmed all financial guidance Q2 2024 Earnings Per Share (EPS) Highlights | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Operating EPS (Non-GAAP) | $0.65 | $0.35 | +$0.30 | | GAAP Net Income EPS | $0.65 | $0.67 | -$0.02 | - The company reaffirmed its full-year 2024 operating earnings guidance range of $2.62 to $2.87 per share and its 2025 range of $3.25 to $3.54 per share[3] - Operating earnings are used as the primary performance measure for communications with investors and for internal purposes like budgeting and incentive compensation[6] Consolidated Financial Results (GAAP) Dominion Energy's Q2 2024 GAAP operating revenue increased to $3.49 billion, while net income slightly decreased Consolidated Statements of Income (GAAP, in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | $3,486 | $3,166 | $7,118 | $7,049 | | Income from operations | $805 | $594 | $1,638 | $1,673 | | Net Income from continuing operations | $491 | $415 | $1,051 | $1,115 | | Net Income attributable to Dominion Energy | $572 | $583 | $1,246 | $1,564 | | Reported EPS - diluted | $0.65 | $0.67 | $1.43 | $1.82 | Reconciliation of GAAP to Operating Earnings Q2 2024 operating earnings of $563 million were adjusted from GAAP, reflecting significant NDT benefits and impairment charges Q2 2024 Reconciliation of Reported to Operating Earnings (in millions, except EPS) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Reported Earnings (GAAP) | $572 | $583 | | Adjustments (after-tax) | ($9) | ($273) | | Operating Earnings (Non-GAAP) | $563 | $310 | | Reported EPS (GAAP) | $0.65 | $0.67 | | Adjustments to EPS | $0.00 | ($0.32) | | Operating EPS (Non-GAAP) | $0.65 | $0.35 | - Key pre-tax adjustments for the first six months of 2024 included: - A net market benefit of $138 million (primarily from NDT funds) - A $227 million net benefit from discontinued gas distribution operations - $80 million in charges for nonregulated asset impairments[11] Segment Performance and Variance Analysis Q2 operating earnings increased significantly, driven by strong performance in Dominion Energy Virginia and Contracted Energy segments Operating Earnings by Segment (in millions) | Segment | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Dominion Energy Virginia | $485 | $394 | +$91 | | Dominion Energy South Carolina | $69 | $68 | +$1 | | Contracted Energy | $100 | ($45) | +$145 | | Corporate and Other | ($91) | ($107) | +$16 | | Total Operating Earnings | $563 | $310 | +$253 | Dominion Energy Virginia Dominion Energy Virginia's operating earnings increased by $91 million, primarily due to favorable weather and higher rider returns Key Drivers of Change in Operating Earnings (Q2 2024 vs Q2 2023, in millions) | Driver | Impact | | :--- | :--- | | Weather | +$67 | | Rider equity return | +$83 | | Impact of 2023 Virginia legislation | -$65 | | Nuclear production tax credit | +$17 | | Total Change | +$91 | Dominion Energy South Carolina Dominion Energy South Carolina's operating earnings were nearly flat, increasing by just $1 million, as weather benefits were offset by higher costs Key Drivers of Change in Operating Earnings (Q2 2024 vs Q2 2023, in millions) | Driver | Impact | | :--- | :--- | | Weather | +$29 | | Other (O&M, D&A, Interest, etc.) | -$28 | | Total Change | +$1 | Contracted Energy Contracted Energy's operating earnings increased substantially by $145 million, primarily due to the timing of planned Millstone outages Key Drivers of Change in Operating Earnings (Q2 2024 vs Q2 2023, in millions) | Driver | Impact | | :--- | :--- | | Planned Millstone outages | +$83 | | Margin | +$35 | | Unplanned Millstone outages | +$25 | | Total Change | +$145 |