Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dominion Energy Inc (D, Financial) has successfully repositioned itself to provide long-term value for shareholders, customers, and employees, following the completion of its business review.
- The company reported third-quarter operating earnings of $0.98 per share, aligning with normal weather conditions in its utility service areas.
- Dominion Energy Inc (D) has narrowed its full-year guidance range to $2.68 to $2.83 per share, maintaining the original midpoint of $2.75.
- The company has completed approximately $21 billion in debt reduction initiatives, ahead of schedule, across six transactions.
- Dominion Energy Inc (D) is making significant progress on its Coastal Virginia Offshore Wind (CVOW) project, which remains on time and on budget.
Negative Points
- Fourth-quarter earnings are expected to be negatively impacted by higher-than-expected financing costs and the early closing of the CVOW partnership.
- The company faces challenges from Hurricane Helene, which caused significant infrastructure damage and service disruptions in South Carolina, with restoration costs estimated between $100 million to $200 million.
- Dominion Energy Inc (D) anticipates higher financing needs for 2025, requiring careful market monitoring and potential additional share issuances.
- The company is dealing with regulatory lag issues in South Carolina, which affects its ability to earn allowed returns.
- Dominion Energy Inc (D) is exploring the feasibility of small modular reactors (SMRs) with partners like Amazon, but faces potential cost and development risks.
Q & A Highlights
Q: Can you provide more details on the partnership with Amazon and other potential partners regarding SMR technology?
A: Robert Blue, Chairman, President, and CEO, explained that discussions with Amazon and others focus on SMR technology due to significant demand growth, the need for carbon-free generation, and national security interests. Dominion Energy is strategically positioned in Virginia, which supports nuclear initiatives. The company is exploring SMR technology while ensuring cost and development risks are mitigated for customers and capital providers.
Q: Are there any hyperscalers interested in offshore wind projects?
A: Robert Blue noted that while there have been discussions, the focus has been on SMRs. The current offshore wind project, CVOW, is regulated with identified cost recovery, and future offshore wind discussions are premature.
Q: Why does the IRP indicate a short position in capacity? Is there political sensitivity to gas in Virginia?
A: Robert Blue stated that the IRP includes substantial generation additions across various resources, including offshore wind, natural gas, solar, and battery storage. The plan is aggressive and considers PJM's capabilities while focusing on reliability and customer affordability.
Q: What is the status of the Millstone nuclear plant and potential data center opportunities?
A: Robert Blue mentioned that Dominion is exploring uprates at Millstone and potential data center locations, contingent on stakeholder collaboration in Connecticut. The company is also considering contracted procurement options in New England.
Q: How does Dominion plan to address regulatory lag in South Carolina, and is there potential for new nuclear opportunities there?
A: Robert Blue highlighted ongoing legislative discussions in South Carolina focusing on regulatory lag, economic development, and potential partnerships for combined cycle plants. However, Dominion is not pursuing a restart of V.C. Summer's new units.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
