Dominion Energy : Q3 2024 Earnings Conference Call Slide Presentation

Q3 2024 earnings call

November 1, 2024

Important note for investors

This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion Energy. The statements relate to, among other things, expectations, estimates and projections concerning the business and operations of Dominion Energy. We have used the words "path", "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "outlook", "predict", "project", "should", "strategy", "target", "will", "potential" and similar terms and phrases to identify forward-looking statements in this presentation. Such forward-looking statements, including operating earnings per share information and guidance, projected dividends, projected debt and equity issuances, projected cash flow, capital expenditures, operating expenses and debt information, shareholder return, and long-term growth or value, are subject to various risks and uncertainties. As outlined in our SEC filings, factors that could cause actual results to differ include, but are not limited to: the direct and indirect impacts of implementing recommendations from the business review concluded in March 2024; 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 pandemic health event resulting from COVID-19; federal, state and local legislative and regulatory developments; changes to regulated rates collected by Dominion Energy; risks associated with entities in which Dominion Energy shares ownership with third parties, such as a 50% noncontrolling interest in the Coastal Virginia Offshore Wind (CVOW) Commercial Project, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and third party participants and difficulties in exiting these arrangements; 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 construct the 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; risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital contributions, if any, from the noncontrolling financing partner associated with the construction of the CVOW Commercial Project; 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; the availability of nuclear fuel, natural gas, purchased power or other materials utilized by Dominion Energy to provide electric generation, transmission and distribution and/or gas distribution services; additional competition in Dominion Energy's industries; changes in demand for Dominion Energy's services; risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Virginia and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner; the technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies; 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; adverse outcomes in litigation matters or regulatory proceedings; fluctuations in interest rates; the effectiveness to which existing economic hedging instruments mitigate fluctuations in currency exchange rates of the Euro and Danish Krone associated with certain fixed price contracts for the major offshore construction and equipment components of 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 U.S. Securities and Exchange Commission.

The information in this presentation was prepared as of November 1, 2024. Dominion Energy undertakes no obligation to update any forward-looking information statement to reflect developments after the statement is made. Projections or forecasts shown in this document are based on the assumptions listed in this document and are subject to change at any time.

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers to sell or solicitations of offers to buy securities will be made in accordance with the requirements of the Securities Act of 1933, as amended. This presentation has been prepared primarily for security analysts and investors in the hope that it will serve as a convenient and useful reference document. The format of this document may change in the future as we continue to try to meet the needs of security analysts and investors. This document is not intended for use in connection with any sale, offer to sell or solicitation of any offer to buy securities. This presentation includes certain financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP).

A listing of such non-GAAP measures with their GAAP equivalents are as follows: Operating earnings per share (non-GAAP) which has a GAAP equivalent of reported net income per share, Operating earnings (non-GAAP) which has a GAAP equivalent of reported net income and Parent debt (non-GAAP) which has a GAAP equivalent of reported long-term debt, short-term debt, supplemental credit facility borrowings, securities due within one year and preferred stock.

Reconciliations of such non-GAAP measures to their GAAP equivalents have been made available to the extent possible in the Third Quarter 2024 Earnings Release Kit on our investor relations website. With regards to projections, estimates or guidance included in this presentation related to such non-GAAP measures, reconciliations of such projected or estimated non-GAAP measures to applicable GAAP measures are not provided, because the company cannot, without unreasonable effort, estimate or predict with certainty various components of net income, long-term debt, short-term debt, supplemental credit facility borrowings, securities due within one year or preferred stock.

Please continue to regularly check Dominion Energy's website at http://investors.dominionenergy.com/.

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Financial results and guidance

Operating earnings per share and long-term financial guidance

	Metric	Amount	Commentary
	Q3 2024: Actual ($ per share)¹	$0.98	Reflects normal weather impact on utility
	earnings in Q3
	2024 guidance midpoint ($ per share)	$2.75	No change
	2024 guidance ($ per share)	$2.68-$2.83	Narrowed range (previously $2.62-$2.87)
	2025 guidance midpoint ($ per share)	$3.40	No change
		$3.25-$3.54
	2025 guidance ($ per share)	Includes ~10 cents/share of RNG 45Z income	No change
		(no change)
	Long-term operating EPS growth rate	5%-7% off 2025 operating EPS excluding	No change
	RNG 45Z ($3.30)
	2025-2029 capital investment plan ($B)	$43	To be updated on Q4 call

Reaffirmed all financial guidance from March 1 investor meeting

¹ See Third Quarter 2024 Earnings Release Kit for supporting information and a reconciliation to GAAP

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Business review debt reduction initiatives completed

Significant quantitative and qualitative improvements to our credit profile

100% of after-tax proceeds used to reduce parent-level debt

							Approximate
			After-tax	Debt	Total debt		months between
	($B)	Status	proceeds	transferred	reduction	Est. closing	announce and close
	Cove Point LNG¹	✓ Completed	$3.3	-	$3.3	✓ Closed	2
	Deferred fuel securitization (DEV)	✓ Completed	1.3	-	1.3	✓ Closed	9
	The East Ohio Gas Company	✓ Completed	4.3	2.3	6.6	✓ Closed	6
	Questar Gas & Wexpro	✓ Completed	2.7	1.3	4.0	✓ Closed	9
	PSNC (updated)	✓ Completed	1.7	1.3	2.9	✓ Closed	13
	CVOW noncontrolling equity financing (updated)	✓ Completed	2.6	-	2.6	✓ Closed	8
	Total		~$15.9	~$4.9	~$20.7

Successfully completed ~$21B debt reduction initiatives associated with Dominion Energy's business

review

Note: Figures may not sum due to rounding
¹ Includes the termination of related interest rate derivatives	4

2024 capital raising activities completed

Expected fixed income activities¹ ($B)

	Original guidance	Issued YTD	Remaining
Dominion Energy Virginia	$2.0-$2.5	$2.2 (updated)	✓ Completed
Dominion Energy South Carolina	-	-	-
Contracted Energy	-	-	-
DEI hybrid	0.7-2.0	2.0	✓ Completed
Consolidated	$2.7-$4.5	$4.2 (updated)	✓ Completed

Expected common equity activities² ($B)

	Original guidance	Issued YTD	Remaining
At-the-market ("ATM")	$0.4-$0.6	$0.6 (updated)	✓ Completed

Will look to opportunistically de-risk 2025 financings as conditions warrant during remainder of 2024

¹ Excludes short-term debt activity as well as potential opportunistic financings including liability management and PSNC debt issued prior to closing which was transferred to Enbridge ² Excludes dividend	5
reinvestment issuance range of ~$0.2B; completed ~$0.1B YTD

Dominion Energy

Employee safety

OSHA recordable incident rate¹

~74% safer than industry average

	1.78																			1.70
Number of recordablesper	100 employees eachworkyear
1.44	1.34	1.32
			1.06	1.02	1.04	1.00	0.92	0.88
							0.80
										0.68
										0.65	0.62			0.52
													0.41	0.46	0.45	0.44
	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024 YTD	2022
																				Industry
																				average²

¹ Pro forma for SCANA and Questar; 2024 YTD through September ² Average of Bureau of Labor Statistics 2022 industry data for electric power generation, transmission, and distribution	6
(NAICS code 2211) and natural gas distribution (NAICS code 2212)

Dominion Energy Virginia

Regulated offshore wind: Very successful first monopile driving season

Installation status as of October 31st

Achieved first piling season targets

Monopiles installed: 78 (updated)

Pinpiles installed: 4 (updated)

Achieved run-rate installation cadence

of 25 foundations per month

Construction schedule spans two

monopile driving seasons¹; 98 monopiles

and 8 pinpiles remaining for 2025

¹ Monopile driving season is May to October	7
Pictured: DEME Livingstone cable lay vessel (top) loaded with OEC cable and DEME Orion heavy lift vessel (bottom) loaded with monopiles preparing for the next morning's construction activities

Dominion Energy Virginia

Regulated offshore wind: On time and on budget (no change)

Timeline	✓ Commenced monopile installation: May 2024 (no change)
✓ Expected construction completion: End of 2026 (no change)
	✓ All federal permits received (no change)
Permitting
	✓ Received 96 monopiles from EEW at the Portsmouth Marine Terminal in Virginia (updated)
	✓ Installed 78 monopiles, achieving run-rate cadence of 25 monopiles per month (updated)
	✓ Laid the first two of nine marine deepwater export cables (updated)
	✓ First installation of scour protection on 42 monopiles (updated)

Materials

and

equipment

• All three offshore substations remain on track; first OSS in final commissioning and expected to be completed and shipped to Virginia for installation before the next monopile season begins (updated)
• 82 transition pieces have been fabricated and 33 have been delivered to the Portsmouth Marine Terminal (updated)

	✓ All onshore underground cable manufactured; more than 50% of the 600 miles of offshore cable produced (updated)
	✓ Fabrication of the turbine towers began in June; nacelle and blade production will begin in Q1 2025 (no change)
	✓ Onshore construction activities remain on track, including civil work, horizontal directional drills, and the bores where
	the export cables come ashore (no change)
	✓ November: Submit 2024 rider filing, including annual revenue request of $640M (updated)
Regulatory

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Dominion Energy Virginia

Regulated offshore wind: On time and on budget (no change)

• LCOE (updated): $56/MWh¹ compared to initial filing submission of $80 to $90/MWh¹
• • Legislative prudency cap (no change): $125/MWh²

Original filing (Nov 2021)

Prior update (May 2024)

Current (Nov 2024)

LCOE excluding REC ($/MWh)¹	$97	$84	$85
REC ($/MWh)	$10	$11	$29
LCOE including REC ($/MWh)¹	$80-$90	$73	$56

• Current capital budget (no change): $9.8B including contingency

Costs

▪ Project-to-date investment³: ~$5.3B (updated)

▪ Estimated total project investment by year-end 2024: ~$6B (no change)

▪ Current fixed costs (no change): ~94% of capital budget (excluding contingency)

▪ Current unfixed costs: ~$590M (incl. onshore electrical work/PJM network upgrades, fuel for transport/installation, certain project oversight costs) (no change)

▪ Current unused contingency (updated): $121M compared to $143M last quarter

▪ Cost-sharing settlement (no change): 100% of incurred project cost up to $10.3B deemed recoverable from customers (subject to prudency determination)

¹ In 2027 dollars ² In 2018 dollars 3 As of September 30, 2024

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Dominion Energy Virginia

Regulated offshore wind: Continues to meet project milestones

Last turbine

								installed /
100%					43%		First	project COD
					complete		turbine
						installed
					(updated)
75%						First		Last transition
				transition piece
					piece installed
				First 4 pinpiles	installed
				installed¹
			ROD	First monopile
50%			installed¹			Last monopile
	First 8 monopiles	published
					installed¹
		completed and
						First OSS
		shipped
						installed
25%				COP	First cable laid
				approved
			Final EIS issued
			by BOEM
0%
Dec-22	Dec-23	Dec-24	Dec-25	Dec-26

¹ Construction schedule spans two monopile driving seasons

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