Dominion Energy(US:D)2025-08-01 14:36Glossary of Terms This section defines abbreviations and acronyms used in the Form 10-Q, including CVOW, PJM, and VCEA - This section provides definitions for abbreviations and acronyms used throughout the Form 10-Q, such as CVOW (Coastal Virginia Offshore Wind), PJM (PJM Interconnection, LLC), and VCEA (Virginia Clean Economy Act)91011 PART I. Financial Information Financial Statements This section presents unaudited consolidated financial statements for Dominion Energy and Virginia Power, including a revision for income tax misstatements on nuclear decommissioning trusts Dominion Energy, Inc. Financial Statements Dominion Energy reported operating revenue of $7.89 billion and net income of $1.43 billion for H1 2025, with diluted EPS of $1.65 Dominion Energy, Inc. Consolidated Statements of Income (Six Months Ended June 30) | (in millions, except per share amounts) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Revenue | $7,886 | $7,118 | | Income from operations | $2,319 | $1,638 | | Net Income Attributable to Dominion Energy | $1,425 | $966 | | EPS - Diluted | $1.65 | $1.10 | Dominion Energy, Inc. Consolidated Balance Sheet Highlights (As of June 30, 2025) | (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $6,956 | $6,613 | | Total property, plant and equipment, net | $73,284 | $68,862 | | Total assets | $107,441 | $102,415 | | Total current liabilities | $10,447 | $9,289 | | Total long-term debt | $40,294 | $37,525 | | Total liabilities | $76,569 | $72,613 | | Total equity | $30,872 | $29,802 | Dominion Energy, Inc. Consolidated Cash Flows (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,429 | $2,838 | | Net cash provided by (used in) investing activities | $(6,385) | $1,328 | | Net cash provided by (used in) financing activities | $4,004 | $(4,260) | | Increase (decrease) in cash | $48 | $(94) | Virginia Electric and Power Company Financial Statements Virginia Power's operating revenue increased to $5.48 billion and net income to $1.02 billion for H1 2025 Virginia Power Consolidated Statements of Income (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Revenue | $5,477 | $5,026 | | Income from operations | $1,713 | $1,482 | | Net Income Attributable to Virginia Power | $1,020 | $938 | Virginia Power Consolidated Balance Sheet Highlights (As of June 30, 2025) | (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $73,096 | $68,387 | | Total liabilities | $44,174 | $43,291 | | Total equity | $28,922 | $25,096 | Combined Notes to Consolidated Financial Statements Notes detail accounting policies, dispositions including East Ohio and Questar Gas, a $10.9 billion CVOW project cost increase, and Virginia Power's proposed rate hike - The company identified and corrected misstatements in previously issued financial statements related to income taxes associated with investments in qualified nuclear decommissioning trusts. The impact was determined not to be material to any prior period6162 - Dominion Energy completed several major dispositions as part of its business review: - Sale of East Ohio: Closed in March 2024 for approximately $6.6 billion, including assumed debt - Sale of Questar Gas and Wexpro: Closed in May 2024 for approximately $4.3 billion, including assumed debt - Sale of PSNC: Closed in September 2024737779 - The estimated total project cost for the CVOW Commercial Project is now approximately $10.9 billion, excluding financing costs. This reflects an estimated impact from tariffs effective in March-July 2025. Due to cost-sharing mechanisms, Virginia Power recorded impairment charges of $96 million for the six months ended June 30, 2025, for costs not expected to be recovered from customers153155 - In March 2025, Virginia Power filed its 2025 Biennial Review, proposing a base rate increase of $822 million effective January 2026, with an additional $345 million increase effective January 2027. The proposal reflects an ROE of 10.40%170 - In April 2025, Dominion Energy amended its joint revolving credit facility, increasing the limit from $6.0 billion to $7.0 billion and extending the maturity to April 2030205 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Dominion Energy's 35% Q2 and 48% H1 2025 net income growth, segment performance, liquidity, and future issues like the CVOW project and regulatory impacts Results of Operations—Dominion Energy Dominion Energy's net income increased 35% in Q2 and 48% in H1 2025, driven by investment earnings and rider returns, despite asset sales Dominion Energy Consolidated Results Summary | (in millions, except EPS) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Dominion Energy | $760 | $563 | $1,425 | $966 | | Diluted EPS | $0.88 | $0.64 | $1.65 | $1.10 | - Key drivers for the YTD 2025 net income increase include the absence of prior-year negative market impacts on pension plans, higher rider returns from capital investments, increased gains on economic hedging, and new renewable energy tax credits308 Results of Operations—Virginia Power Virginia Power's net income increased 12% in Q2 and 9% in H1 2025, driven by higher rider equity returns despite the CVOW project sale Virginia Power Net Income Summary | (in millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Virginia Power | $535 | $477 | $1,020 | $938 | Segment Results of Operations Dominion Energy Virginia's net income grew to $1.11 billion, while Dominion Energy South Carolina increased to $261 million, and Contracted Energy decreased to $156 million Net Income Contribution by Segment (Year-To-Date) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Dominion Energy Virginia | $1,110 | $909 | | Dominion Energy South Carolina | $261 | $149 | | Contracted Energy | $156 | $222 | | Corporate and Other | $(102) | $(314) | | Consolidated | $1,425 | $966 | Liquidity and Capital Resources Operating cash flow decreased to $2.4 billion, investing activities used $6.4 billion, and financing provided $4.0 billion, with the credit facility increasing to $7.0 billion Summary of Cash Flows (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Cash flows provided by operating activities | $2,429 | $2,838 | | Cash flows provided by (used in) investing activities | $(6,385) | $1,328 | | Cash flows provided by (used in) financing activities | $4,004 | $(4,260) | | Net increase (decrease) in cash | $48 | $(94) | - During H1 2025, Dominion Energy and its subsidiaries issued a total of $4.2 billion in long-term debt370 Future Issues and Other Matters Future issues include the $10.9 billion CVOW project, potential impacts from OBBBA legislation on IRA tax credits, and new EPA rules affecting power plant emissions - The CVOW Commercial Project's estimated total cost is approximately $10.9 billion. Major offshore construction began in May 2024, with 134 of 176 monopiles installed as of July 2025. Turbine installation is expected to begin in H2 2025393396 - The OBBBA legislation modifies IRA tax credits, including terminating production and investment tax credits for wind and solar facilities placed in service after 2027, which could materially impact the company397 - The SCESA, enacted in May 2025, establishes a rate stabilization mechanism allowing utilities like DESC to adjust base rates annually based on earned ROE, requiring a general rate case every five years402 Quantitative and Qualitative Disclosures About Market Risk The company manages market risks from commodity prices, interest rates, and foreign currency, with sensitivity analyses showing potential $41 million and $18 million impacts - The company's primary market risks are commodity price, interest rate, foreign currency exchange rate, and equity securities price risk406 - A hypothetical 10% decrease in commodity prices would decrease the fair value of Dominion Energy's commodity derivatives by $41 million as of June 30, 2025410 - A hypothetical 10% increase in market interest rates would decrease Dominion Energy's earnings by $18 million due to its variable rate debt413 - Foreign currency exchange risk is related to CVOW Commercial Project contracts denominated in approximately €2.6 billion and 5.1 billion Danish Krone406 Controls and Procedures Management concluded that disclosure controls and procedures are effective, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO of both Dominion Energy and Virginia Power concluded that the companies' disclosure controls and procedures are effective as of the end of the reporting period422 - No changes occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the companies' internal control over financial reporting423 PART II. Other Information Legal Proceedings The company is involved in various legal and regulatory proceedings, with a $1 million disclosure threshold for governmental monetary sanctions - The company uses a disclosure threshold of $1 million for environmental proceedings where a governmental authority is a party and potential monetary sanctions are involved425 Risk Factors No material changes to the company's previously disclosed risk factors were reported during the quarter - No material changes to the company's risk factors were reported during the quarter426 Unregistered Sales of Equity Securities and Use of Proceeds Dominion Energy purchased 40,590 shares at $56.33 for tax obligations, with $0.92 billion remaining under its stock repurchase authorization Dominion Energy Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 4/1/25 - 4/30/25 | 31,733 | $56.26 | | 5/1/25 - 5/31/25 | 458 | $54.88 | | 6/1/25 - 6/30/25 | 8,399 | $56.67 | | Total | 40,590 | $56.33 | - The company has approximately $0.92 billion remaining under its stock repurchase authorization as of June 30, 2025427429 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the last fiscal quarter430 Exhibits This section lists all exhibits filed with the Form 10-Q, including corporate governance, debt instruments, and CEO/CFO certifications