RICHMOND - Dominion Energy (NYSE: D) today announced an unaudited net income determined in accordance with Generally Accepted Accounting Principles for the three months ended Dec. 31, 2021, of $1.3 billion compared with a net gain of $682 million for the same period in 2020.
Reported earnings were a net gain, for the 12 months ended Dec. 31, 2021, of $3.3 billion ($3.98 per share) compared with a net loss of $401 million ($0.57 per share) for the same period in 2020.
Operating earnings for the three months ended Dec. 31, 2021, were $752 million ($0.90 per share), compared with operating earnings of $672 million ($0.81 per share) for the same period in 2020. Operating earnings for the 12 months ended Dec. 31, 2021, were $3.2 billion ($3.86 per share) compared with operating earnings of $3.0 billion ($3.54 per share) for the same period in 2020.
GAAP earnings for the 12 months ended Dec. 31, 2021, relative to operating earnings reflect the mark-to-market impact of economic hedging activities, gains/losses on nuclear decommissioning trust funds, contributions of discontinued operations and the sale of Questar Pipelines, regulated asset retirements and other charges, and other adjustments.
Operating earnings are defined as reported earnings adjusted for certain items. Details of operating earnings as compared to prior periods, business segment results and detailed descriptions of items included in reported earnings but excluded from operating earnings can be found on Schedules 1, 2, 3 and 4 of this release.
In addition, Dominion Energy has executed a definitive agreement to sell its West Virginia natural gas utility - Hope Gas, Inc. (Dominion Energy West Virginia or DEWV) - to Ullico Inc.'s infrastructure fund (Ullico) for $690 million. The transaction is expected to close late this year.
Ullico plans to integrate DEWV with Hearthstone Utilities, Inc. (Hearthstone), a portfolio company that owns and operates gas utilities in Indiana, Maine, Montana, North Carolina, and Ohio. As part of the definitive agreement, Hearthstone will move its headquarters to West Virginia.
The transaction value, achieved through a competitive sale process, represents approximately 26.2x 2021 net income and 2.0x 2021 year-end rate base. DEWV is a Clarksburg, W.Va.-based gas utility employing about 300 and serving 111,000 West Virginia customers. The sale is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act and approval from the West Virginia Public Service Commission.
Guidance
Dominion Energy expects 2022 operating earnings in the range of $3.95 to $4.25 per share.
First-quarter 2022 operating earnings are expected to be in the range of $1.10 to $1.25 per share.
Important note to investors regarding operating, reported earnings
Dominion Energy uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion Energy also uses operating earnings internally for budgeting, for reporting to the Board of Directors, for the company's incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion Energy management believes operating earnings provide a more meaningful representation of the company's fundamental earnings power.
In providing its operating earnings guidance, the company notes that there could be differences between expected reported earnings and estimated operating earnings for matters such as, but not limited to, acquisitions, divestitures or extreme weather events and other natural disasters. Dominion Energy management is not able to estimate the aggregate impact of these items on future period reported earnings.
About Dominion Energy
About 7 million customers in 13 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050.
This release contains certain forward-looking statements, including forecasted operating earnings fourth-quarter and full-year 2021 and beyond which are subject to various risks and uncertainties. Factors that could cause actual results to differ include, but are not limited to: unusual weather conditions and their effect on energy sales to customers and energy commodity prices; extreme weather events and other natural disasters; extraordinary external events, such as the current pandemic health event resulting from COVID-19; federal, state and local legislative and regulatory developments; changes to regulated rates collected by Dominion Energy; timing and receipt of regulatory approvals necessary for planned construction or expansion projects and compliance with conditions associated with such regulatory approvals; the inability to complete planned construction projects within time frames initially anticipated; risks and uncertainties that may impact the ability to develop and construct the Coastal Virginia Offshore Wind (CVOW) Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers; changes to federal, state and local environmental laws and regulations, including those related to climate change; cost of environmental strategy and compliance, including cost related to climate change; changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities; changes in operating, maintenance and construction costs; additional competition in Dominion Energy's industries; changes in demand for Dominion Energy's services; receipt of approvals for, and timing of, closing dates for acquisitions and divestitures; impacts of acquisitions, divestitures, transfers of assets by Dominion Energy to joint ventures, and retirements of assets based on asset portfolio reviews; the expected timing and likelihood of the sales of Kewaunee and hope, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such regulatory approvals; adverse outcomes in litigation matters or regulatory proceedings; fluctuations in interest rates; fluctuations in currency exchange rates of the Euro or Danish Krone associated with the CVOW Commercial Project; changes in rating agency requirements or credit ratings and their effect on availability and cost of capital and capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms. Other risk factors are detailed from time to time in Dominion Energy's quarterly reports on Form 10-Q and most recent annual report on Form 10-K filed with the Securities and Exchange Commission.
Contact:
Ryan Frazier
Tel: (804) 836-2083
Email: C.Ryan.Frazier@dominionenergy.com
DOMINION ENERGY, INC. 
