Dominion Energy(US:D)2026-02-23 17:02Financial Data and Key Metrics Changes - Dominion Energy reported full year 2025 operating earnings of $3.42 per share, exceeding the midpoint of guidance, with GAAP earnings at $3.45 per share [6][8] - The company expects 2026 operating earnings per share, excluding RNG 45Z credit income, to be between $3.40 and $3.60, representing a 6.1% increase from the 2025 guidance midpoint of $3.30 [9][14] - The estimated CFO pre-working capital to debt ratio is nearly 100 basis points above the downgrade threshold, marking the highest result since 2012 [8] Business Line Data and Key Metrics Changes - The Coastal Virginia Offshore Wind project is over 70% complete, with first power expected by the end of March 2026 [20][21] - The project budget stands at $11.5 billion, including a contingency of $155 million [22] - The data center pipeline has grown to over 48 GW, an increase of approximately 1.4 GW or 3% since September 2025 [30] Market Data and Key Metrics Changes - Weather-normal sales in Dominion Energy Virginia increased by 5.4% in 2025, with all top 20 peak demand days occurring in the last 14 months [10] - Customer rates at Dominion Energy Virginia and South Carolina remain lower than the national average, with expected increases of around 2.6% and 2.8% respectively [26] Company Strategy and Development Direction - The company is focused on three principal priorities: achieving financial commitments, major construction milestones for the Coastal Virginia Offshore Wind project, and constructive regulatory outcomes [5] - A significant increase in the 5-year capital investment forecast from $50 billion to approximately $65 billion, primarily at Dominion Energy Virginia, is aimed at meeting growing customer demand [11][12] - The company aims for a long-term operating earnings per share growth rate of 5%-7% annually, with a bias towards the upper half of that range starting in 2028 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their plan, despite facing both tailwinds and headwinds [17] - The company is committed to maintaining competitive rates while improving operational efficiency and customer service [28] - Management highlighted the importance of regulatory and construction execution, stable financing markets, and customer affordability in achieving future growth [16] Other Important Information - The company achieved record-setting safety performance in 2025, with an OSHA recordable rate of 0.26 [20] - The Virginia State Corporation Commission approved the Certificate of Public Convenience and Necessity for the Chesterfield Energy Reliability Center, expected to cost approximately $1.5 billion [35] Q&A Session Summary Question: EPS growth and CapEx increase - Management noted that the EPS growth guidance reflects a conservative approach, with adjustments made for Section 45Z credits and the impact of Millstone's pricing post-PPA expiration [44][47] Question: Data center ramp and CapEx outlook - Management confirmed that data center expectations are based on historical performance and existing contracts, with a focus on deploying capital to support long-term financial performance [50][53] Question: CVOW turbine installation cadence - Management indicated that the majority of turbine installations are expected in 2026, with a target of approximately 2.25 days per installation [63] Question: Utility capital plan and PJM transmission - Management confirmed that the PJM transmission projects are included in the capital plan, with a portfolio approach extending beyond 2030 [72][76] Question: Dividend payout considerations - Management acknowledged the trend of peers reducing payout ratios and indicated that this will be considered when making future decisions on dividend growth [77] Question: New nuclear technology evaluation - Management is still evaluating new nuclear technology and does not currently have capital allocated for small modular reactors in the 5-year plan [78]