Dominion Energy Announces First-Quarter 2024 Earnings

Consolidated Statements of Income (GAAP)

Dominion Energy, Inc.

Consolidated Statements of Income *

Unaudited (GAAP Based)

Three Months Ended

March 31,

(millions, except per share amounts)

2024

2023

Operating Revenue

$

3,632

$

3,883

Operating Expenses

Electric fuel and other energy-related purchases

959

1,022

Purchased electric capacity

12

8

Purchased gas

120

123

Other operations and maintenance⁽¹⁾

885

838

Depreciation and amortization

621

622

Other taxes

202

191

  Total operating expenses

2,799

2,804

Income (loss) from operations

833

1,079

Other income (expense)

435

276

Interest and related charges

574

479

Income (loss) from continuing operations including
     noncontrolling interests before income tax expense (benefit)

694

876

Income tax expense (benefit)

134

176

Net Income (loss) from continuing operations

560

700

Net Income (loss) from discontinued operations

114

281

Net Income (loss) attributable to Dominion Energy

$

674

$

981

Reported Income (loss) per common share from continuing
     operations - diluted

$

0.64

$

0.81

Reported Income (loss) per common share from discontinued
     operations - diluted

0.14

0.34

Reported Income (loss) per common share - diluted

$

0.78

$

1.15

Average shares outstanding, diluted

837.6

835.5

(1)                  Includes impairment of assets and other charges (benefits) and losses (gains) on sales of assets.

*The notes contained in Dominion Energy's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

Schedule 1 - Segment Reported and Operating Earnings
Unaudited

Three Months Ended March 31,

(millions, except per share amounts)

Change

REPORTED EARNINGS⁽¹⁾

$

674

$

981

$

(307)

Pre-tax loss (income)⁽²⁾

(264)

(590)

326

Income tax⁽²⁾

73

124

(51)

Adjustments to reported earnings

(191)

(466)

275

OPERATING EARNINGS (non-GAAP)

$

483

$

515

$

(32)

By segment:

Dominion Energy Virginia

424

386

38

Dominion Energy South Carolina

80

91

(11)

Contracted Energy

122

111

11

Corporate and Other

(143)

(73)

(70)

$

483

$

515

$

(32)

Earnings Per Share (EPS)⁽³⁾:

REPORTED EARNINGS⁽¹⁾

$

0.78

$

1.15

$

(0.37)

Adjustments to reported earnings (after-tax)

(0.23)

(0.56)

0.33

OPERATING EARNINGS (non-GAAP)

$

0.55

$

0.59

$

(0.04)

By segment:

Dominion Energy Virginia

0.51

0.46

0.05

Dominion Energy South Carolina

0.10

0.11

(0.01)

Contracted Energy

0.14

0.13

0.01

Corporate and Other

(0.20)

(0.11)

(0.09)

$

0.55

$

0.59

$

(0.04)

Common Shares Outstanding (average, diluted)

837.6

835.5

(1)

Determined in accordance with Generally Accepted Accounting Principles (GAAP).

(2)

Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings. Refer to Schedules 2 and 3 for details or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion Energy's website at investors.dominionenergy.com.

(3)

The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued. For the three months ended March 31, 2024 and 2023, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with preferred stock of $9 million (Series B) and $11 million (Series C). See Forms 10-Q and 10-K for additional information.

(millions, except per share amounts)

1Q24

2Q24

3Q24

4Q24

YTD 2024

Reported earnings

$

674

$

674

Adjustments to reported earnings⁽¹⁾:

Pre-tax loss (income)

(264)

(264)

Income tax (benefit)

73

73

(191)

(191)

Operating earnings (non-GAAP)

$

483

$

483

Common shares outstanding (average, diluted)

837.6

837.6

Reported earnings per share⁽²⁾

$

0.78

$

0.78

Adjustments to reported earnings per share⁽²⁾

(0.23)

(0.23)

Operating earnings (non-GAAP) per share⁽²⁾

$

0.55

$

0.55

(1) Adjustments to reported earnings are reflected in the following table:

1Q24

2Q24

3Q24

4Q24

YTD 2024

Pre-tax loss (income):

Discontinued operations

$

(165)

$

(165)

Net loss (gain) on NDT funds

(266)

(266)

Mark-to-market impact of economic hedging activities

108

108

Regulated asset retirements and other charges

(17)

(17)

Nonregulated asset impairments and other charges

47

47

Business review costs

29

29

$

(264)

$

(264)

Income tax expense (benefit):

Tax effect of above adjustments to reported earnings⁽³⁾

584

584

Deferred taxes associated with sale of gas distribution
     operations⁽⁴⁾

(511)

(511)

$

73

$

73

(2)

The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. For the first quarter of 2024, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with preferred stock of $9 million (Series B) and $11 million (Series C). See Forms 10-Q and 10-K for additional information.

(3)

Excludes a $450 million tax benefit on non-deductible goodwill associated with the sale of gas distribution operations. Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, calculation of such amounts may be adjusted in connection with the calculation of the Company's year-to-date income tax provision based on its estimated annual effective tax rate.

(4)

Represents the reversal of previously established deferred taxes related to the basis in the stock of the gas distribution operations.

(millions, except per share amounts)

1Q23

2Q23

3Q23

4Q23

YTD 2023⁽⁵⁾

Reported earnings

$

981

$

583

$

157

$

273

$

1,994

Adjustments to reported earnings⁽¹⁾:

Pre-tax loss (income)

(590)

(346)

(778)

1

(1,713)

Income tax (benefit)

124

73

1,272

(7)

1,462

(466)

(273)

494

(6)

(251)

Operating earnings (non-GAAP)

$

515

$

310

$

651

$

267

$

1,743

Common shares outstanding (average, diluted)

835.5

836.2

836.8

837.3

836.5

Reported earnings per share⁽²⁾

$

1.15

$

0.67

$

0.16

$

0.30

$

2.29

Adjustments to reported earnings per share⁽²⁾

(0.56)

(0.32)

0.59

(0.01)

(0.30)

Operating earnings (non-GAAP) per share⁽²⁾

$

0.59

$

0.35

$

0.75

$

0.29

$

1.99

(1) Adjustments to reported earnings are reflected in the following table:

1Q23

2Q23

3Q23

4Q23

YTD 2023

Pre-tax loss (income):

Discontinued operations

$

(337)

$

(206)

$

(683)

$

96

$

(1,130)

Net loss (gain) on NDT funds

(123)

(158)

98

(228)

(411)

Mark-to-market impact of economic hedging activities

(272)

(58)

(287)

(141)

(758)

Regulated asset retirements and other charges

61

97

61

151

370

Nonregulated asset impairments and other charges

-

-

-

118

118

Net loss (gain) on real estate dispositions

81

(21)

16

(5)

71

Storm damage and restoration costs (income)

-

-

12

(2)

10

Business review costs

-

-

5

12

17

$

(590)

$

(346)

$

(778)

$

1

$

(1,713)

Income tax expense (benefit):

Tax effect of above adjustments to reported earnings⁽³⁾

124

73

333

107

637

Deferred taxes associated with sale of gas distribution
     operations⁽⁴⁾

-

-

939

(114)

825

$

124

$

73

$

1,272

$

(7)

$

1,462

(2)

The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. During each quarter of 2023, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with preferred stock of $9 million (Series B) and $11 million (Series C). See Forms 10-Q and 10-K for additional information.

(3)

Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, calculation of such amounts may be adjusted in connection with the calculation of the Company's year-to-date income tax provision based on its estimated annual effective tax rate.

(4)

Represents deferred taxes related to the basis in the stock of the gas distribution operations expected to be sold to Enbridge that will reverse upon the completion of each sale.

(5)

YTD EPS may not equal sum of quarters due to share count difference.

Schedule 4 - Reconciliation of 1Q24 Earnings to 1Q23

Preliminary, Unaudited

Three Months Ended

March 31,

2024 vs. 2023

(millions, except per share amounts)

Increase / (Decrease)

Reconciling Items

Amount

EPS

Change in reported earnings (GAAP)

$

(307)

$

(0.37)

Change in Pre-tax loss (income)⁽¹⁾

326

0.39

Change in Income tax⁽¹⁾

(51)

(0.06)

Adjustments to reported earnings

$

275

$

0.33

Change in consolidated operating earnings (non-GAAP)

$

(32)

$

(0.04)

Dominion Energy Virginia

Weather

$

22

$

0.03

Customer usage and other factors

23

0.03

Customer-elected rate impacts

21

0.03

Rider equity return

53

0.06

Impact of 2023 Virginia legislation

(79)

(0.09)

Storm damage and service restoration

(15)

(0.02)

Planned outage costs

(7)

(0.01)

Depreciation and amortization

(3)

-

Interest expense, net

7

0.01

Other

16

0.01

Share dilution

-

Change in contribution to operating earnings

$

38

$

0.05

Dominion Energy South Carolina

Weather

$

10

$

0.01

Customer usage and other factors

12

0.01

Customer-elected rate impacts

(2)

-

Base & RSA rate case impacts

1

-

Depreciation and amortization

(5)

(0.01)

Interest expense, net

(7)

(0.01)

Other

(20)

(0.01)

Share dilution

-

Change in contribution to operating earnings

$

(11)

$

(0.01)

Contracted Energy

Margin

$

1

$

-

Planned Millstone outages⁽²⁾

2

-

Unplanned Millstone outages⁽²⁾

(6)

(0.01)

Depreciation and amortization

7

0.01

Other

7

0.01

Share dilution

-

Change in contribution to operating earnings

$

11

$

0.01

Corporate and Other

Interest expense, net

$

(60)

$

(0.07)

Equity method investments

(2)

-

Pension and other postretirement benefit plans

(4)

-

Corporate service company costs

4

-

Other

(8)

(0.02)

Share dilution

-

Change in contribution to operating earnings

$

(70)

$

(0.09)

Change in consolidated operating earnings (non-GAAP)

$

(32)

$

(0.04)

Change in adjustments included in reported earnings⁽¹⁾

$

(275)

$

(0.33)

Change in consolidated reported earnings

$

(307)

$

(0.37)

(1)

Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings. Refer to Schedules 2 and 3 for details, or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion Energy's website at investors.dominionenergy.com.

(2)

Includes earnings impact from outage costs and lower energy margins.

NOTE: Figures may not sum due to rounding.