Dominion Energy (D) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating earnings per share were $0.65, with weather-normalized EPS at $0.62, driven by improved weather, regulated investment, and Millstone performance; GAAP net income was $572 million, down 2% year-over-year.

• All 2024 and long-term financial guidance reaffirmed, including operating EPS guidance of $2.62–$2.87 for 2024 and $3.25–$3.54 for 2025, with 5%-7% annual growth targeted through 2029.

• Offshore wind project (CVOW) is on time and on budget, with 42 monopiles installed, all federal permits received, and major milestones achieved in equipment delivery.

• Significant credit profile improvement through $21 billion in debt reduction actions (72% completed), asset sales, and equity/debt issuances.

• Data center-driven demand growth is accelerating, with DEV sales growth expected at 4.5%-5.5% for 2024 and multiple new data centers connected.

Financial highlights

• Q2 2024 operating and GAAP EPS both $0.65; operating revenue increased 10% to $3.49 billion, with positive drivers from weather, regulated investment, and Millstone.

• Virginia Power Q2 net income rose 43% to $479 million, with commercial electric sales growth at 6.3% YoY and total regulated electric sales up 2.0%.

• Net income from discontinued operations was $81 million in Q2, reflecting asset sales.

• Q2 operating margin improved to 23.1% from 18.8% year-over-year.

• Year-to-date net income was $1,246 million, down 20% from the prior year, mainly due to asset sales and legislative impacts.

Outlook and guidance

• 2024 operating EPS guidance range reaffirmed at $2.62–$2.87, midpoint $2.75; 2025 EPS guidance $3.25–$3.54, midpoint $3.40.

• 5%-7% annual operating earnings growth targeted through 2029, excluding RNG 45Z credits.

• Temporary $0.04 headwind in 2025 from higher capacity prices, expected to be offset in future rates.

• No material changes to capital expenditure or dividend plans; guidance on earnings, credit, and dividend remains unchanged.

• 2025 guidance includes ~$0.10/share of RNG 45Z credit income.