Dominion Energy(US:D)2026-02-23 17:02Financial Data and Key Metrics Changes - For the full year 2025, operating earnings were reported at $3.42 per share, exceeding the midpoint of guidance, while GAAP earnings were $3.45 per share, higher than operating EPS [6][8] - The company expects 2026 operating earnings per share, excluding RNG 45Z credit income, to be between $3.40 and $3.60, with a midpoint of $3.50, representing a 6.1% increase from the 2025 guidance midpoint of $3.30 [9][14] Business Line Data and Key Metrics Changes - The Coastal Virginia Offshore Wind (CVOW) project is over 70% complete, with first power expected to be delivered by the end of March 2026 [20][21] - The project budget stands at $11.5 billion, including unused contingency of $155 million [22] Market Data and Key Metrics Changes - In 2025, weather-normal sales in the Dominion Energy Virginia LSE increased by 5.4%, indicating strong demand growth [10] - The company has over 48 GW in various stages of contracting for data center customers, reflecting a 3% increase from the previous quarter [30] Company Strategy and Development Direction - The company is focused on three principal priorities: achieving financial commitments, completing major construction milestones for CVOW, and achieving favorable regulatory outcomes [5] - A significant increase in the 5-year capital investment forecast from $50 billion to approximately $65 billion has been announced, with over 90% of this increase occurring at Dominion Energy Virginia [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on commitments and highlighted the importance of regulatory cooperation and customer affordability [5][39] - The company anticipates achieving upper half growth rates of 5%-7% starting in 2028, despite headwinds such as lower RNG production and higher financing costs [15][39] 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 explained that the EPS growth rate of 6% is influenced by the biennial rate increase in Virginia and a half-year impact from the South Carolina rate case, with a catch-up effect expected in 2026 [84] Question: Data center ramp and minimum taker pays - Management confirmed that data center expectations are based on historical performance and existing contracts, with a focus on deploying capital to support sales growth [51][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: Dividend payout and growth timing - Management acknowledged the trend of peers reducing payout ratios and indicated that a final decision on dividend growth will be made considering current EPS growth rates [77] Question: New nuclear technology evaluation - Management stated that they are still evaluating new nuclear technology and do not have capital allocated for small modular reactors in the current 5-year plan [78]