We are 2019 Annual Meeting - s2.q4cdn.com · This presentation contains certain forward-looking statements, including forecasted operating earnings for full-year 2019, which are subject

We are 2019 Annual Meeting

of Shareholders

May 7, 2019

Columbia, S.C.

Thomas F. Farrell, II

Chairman, President & CEO

Dominion Energy, Inc.

Important Note to Investors

2

This presentation contains certain forward-looking statements, including forecasted operating earnings for full-year 2019, which are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations may include factors that are beyond the company's ability to control or estimate precisely, including fluctuations in energy -related commodity prices, estimates of future market conditions, additional competition in our industries, changes in the demand for Dominion Energy’s services, access to and costs of capital, fluctuations in the value of our pension assets and assets held in our decommissioning trusts, retirements of assets based on asset portfolio reviews, and the ability to complete planned construction or expansion projects at all or within the terms and timeframes initially anticipated. Other factors include, but are not l imited to, weather conditions and other events, including the effects of hurricanes, high winds, severe storms, earthquakes, floodin g and changes in water temperatures on operations, the risk associated with the operation of nuclear facilities, unplanned outages at facilities in which Dominion Energy has an ownership interest, the impact of operational hazards and catastrophic events, state and federal legislative and regulatory d evelopments, including changes in federal and state tax laws and changes to environmental and other laws and regulations, including those related to climate ch ange, greenhouse gases and other emissions to which we are subject, changes in enforcement practices of regulators relating environmental standards and litigation exposure for remedial activities, political and economic conditions, industrial, commercial and residential growth or decline in Dominion Energy’s service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion Energy, changes to rating agency requirements and ratings, changing financial accounting standards, fluctuations in interest rates, employee workforce factors, including collective bargaining, counter-party credit and performance risks, adverse outcomes in l itigation matters or regulator y proceedings, the risk of hostile cyber intrusions and other uncertainties. Other risk factors are detailed from time to time in Dominion Energy’s most recent quarterly report on Form 10-Q or annual report on Form 10-K fi led with the Securities and Exchange Commission.

Projections or forecasts shown in this presentation are based on the assumptions listed in this presentation and are subject to change at any time. Dominion Energy undertakes no obligation to update any forward-looking information statement to reflect developments after the statement is made. In addition, certain information presented in this document incorporates planned capital expenditures reviewed and endorsed by Dominion Energy’s B oard of Directors in late 2018.. Dominion Energy undertakes no obligation to update such planned expenditures to reflect plan or project-specific developments, including regulatory developments, or other updates until the following annual update for the plans. Actual capital expenditures may be subject to regulatory and/or Board of Directors’ approval and may vary from these estimates.

1. Welcome to South Carolina

2. Five Core Values

3. Where We Are Today

4. Growth Plan

5. Commitment to Community

6. Summary

Today’s Topics

Welcome to South Carolina

4

• Completed SCANA combination Jan. 1

• Employees: 4,300

• 2018 charitable giving: About $2 million➢ Expected to more than double in 2019

• Utility customer accounts: 1.11 million

• Energy infrastructure➢ 5,730 megawatts electric generation

➢ 22,000 miles electric distribution, transmission lines

➢ 11,700 miles gas distribution, transmission pipeline

Please refer to the “Important Note to Investors” on slide 2 of this presentation.

Our Footprint in South Carolina

Electric service areaColumbia

Charleston

Charleston

Columbia

Gas service area Myrtle Beach

Myrtle Beach Electric generating stations

Dominion Energy Carolina Gas Transmission

5

Residential Customer Bills

6

$147.70

$121.53

$151.47$139.76

$50

$70

$90

$110

$130

$150

South Carolina

Electric & Gas

South Atlantic

Average

East Coast Average National Average

Summer 2018

Source: EEI Typical Bills and Annual Rates Report, Summer 2018.

Residential Customer Bills

7

Source: EEI Typical Bills and Annual Rates Report, Winter 2019.

$124.35 $120.18

$155.70$140.63

$50

$70

$90

$110

$130

$150

Dominion Energy

South Carolina

South Atlantic

Average


May 2019

Industrial Rates

7.19 6.58

8.877.04

0

2

4

6

8

10

South Carolina

Electric & Gas

South Atlantic

Average


Summer 2018

Source: EEI Typical Bills and Annual Rates Report, Summer 2018.

Cen

ts p

er K

ilow

att-

Ho

ur

8

Industrial Rates

6.28 6.45

9.59

7.01

0

2

4

6

8

10

Dominion Energy

South Carolina

South Atlantic

Average


May 2019

Cen

ts p

er K

ilow

att-

Ho

ur

9

Source: EEI Typical Bills and Annual Rates Report, Winter 2019.


2. Five Core Values


4. Growth Plan


6. Summary

Today’s Topics

Our Core Values

11

Safety

Our highest priority — in the

workplace & in the community.

Ethics

Integrity, individual responsibility

& accountability go hand-in-hand

with bottom-line results. We cannot

and will not take shortcuts.

Excellence

The odds of long-term success

improve when we go beyond

“good” and strive for “great.”

Embrace Change

Transformation and growth are the

keys to long-term prosperity. A

culture of receptivity to change

and ardor for innovation propels

our company forward.

One Dominion Energy

Our term for teamwork – a

unifying outlook transcending

organizational boundaries and

focusing on our shared mission

and purpose.

Safety

Safety

13

1.87

1.401.24 1.25

1.080.95 0.92

0.830.74 0.74

0.66 0.60 0.55

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

OSHA recordable incident rate

Nu

mb

er

of

Re

co

rda

ble

s p

er

10

0 E

mp

loy

ee

s E

ac

h W

ork

Ye

ar

Safety

14

1.87

1.401.24 1.25

1.080.95 0.92

0.830.74 0.74

0.66 0.60 0.55

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

OSHA recordable incident rate

Nu

mb

er

of

Re

co

rda

ble

s p

er

10

0 E

mp

loy

ee

s E

ac

h W

ork

Ye

ar

Peer Average:

1.06 in 2018

Safety

15

0.65 0.650.46*

2017 2018 2019

OSHA recordable incident rate,

With SCANA

Nu

mb

er

of

Re

co

rda

ble

s p

er

10

0 E

mp

loy

ee

s E

ac

h W

ork

Ye

ar

YTD

* Through April 30, 2019.

Ethics

17

-100%

-80%

-60%

-40%

-20%

0%

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Pe

rce

nt

Re

du

cti

on

SO₂ NOx Hg-98% -92% -97%

Ethics

Generation Emissions Reductions

18

-100%

-80%

-60%

-40%

-20%

0%

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Pe

rce

nt

Re

du

cti

on

SO₂ NOx Hg-98% -92% -97%

Ethics

Generation Emissions Reductions

Net Generation

57.3

51.355.5

57.6 57.2

50.8

41.8

36.133.2 33.1 33.8

36.7

30.127.7

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ethics

19

CO

2E

mis

sio

ns

(Mil

lio

ns

of

Me

tric

To

ns)

Carbon Emissions Reductions

From Generating Fleet

57.3

51.355.5

57.6 57.2

50.8

41.8

36.133.2 33.1 33.8

36.7

30.127.7

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ethics

20

CO

2E

mis

sio

ns

(Mil

lio

ns

of

Me

tric

To

ns)



About twice the reduction

from U.S. power sector

Ethics

21

57.3

51.355.5

57.6 57.2

50.8

41.8

36.133.2 33.1 33.8

36.7

30.127.7

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CO

2E

mis

sio

ns

(Mil

lio

ns

of

Me

tric

To

ns)



About twice the reduction

from U.S. power sector

Net Generation

Ethics

22

• Carbon emissions reduction targets*➢ Intensity: 60 percent – from 2000 to 2030

➢ Total emissions: 55 percent – from 2005 to 2030

80 percent – from 2005 to 2050

* Does not include the Southeast Energy Group. Targets will be updated to include those businesses later this year.


60% 55% 80%

Ethics

23

(35)

(30)

(25)

(20)

(15)

(10)

(5)

-

Legacy Voluntary Programs New and Expanded Voluntary Programs

Voluntary efforts through variety of programs have yielded

substantial methane reductions

Cumulative Methane Saved

Natural Gas Businesses

Me

tha

ne

, Billio

n C

ub

ic F

ee

t

Projected

20222010 2012 2014 201620152011 2013Projected

20302017

50%2010-30

* Does not include the Southeast Energy Group. Targets will be updated to include those businesses later this year.


Sources: EPA filings & internal reporting.

3.3 Million

CARS

Ethics

24

Transparency

• Climate CDP➢ How company identifies, manages climate change risks

➢ Top 20 percent among U.S. utility peers

• Water CDP➢ Current, future water-related risks, opportunities

➢ Top 15 percent among U.S. utility peers

• EEI, AGA sustainability reporting templates

• Climate report➢ “Two degree” scenarios

➢ Governance framework around climate matters

Ethics

25

Diversity & Inclusion

• Recruiting➢ Focus on recruitment of diverse interns, veterans, disabled

➢ Award $5,000 scholarships to up to 50 diverse students each year

➢ Unconscious bias training prerequisite for staffing, hiring managers

➢ More focused recruiting this year

• Retention➢ Sponsor, promote employee resource groups (ERGs)

➢ Survey employees to measure engagement in ERG

Excellence

Excellence

27

• Brought online, on time, on budget:➢ Cove Point liquefaction facility

➢ Greensville County Power Station

➢ 1,350 megawatts of solar brought online since 2016

➢ $900 million in electric transmission assets

➢ Dominion Energy Carolina Gas Charleston project

• Emergency Recovery Award• Edison Electric Institute

• Top Industry Practice Award➢ Nuclear Energy Institute

• 2018 Environmental Excellence Award ➢ Utah Board of Oil, Gas & Mining

Embrace Change

Embrace Change

Innovation, Technology, and

Sustainability Council

(Chaired by CEO)

Innovation team

(SVP + team)

3rd party technical

advisersSenior management

Board of Directors

Behind the

meterSolar

Offshore

wind

Electric

vehiclesRNG

Marine

LNG

TEAMS

29


Embrace Change

30


Behind the

meterSolar

Offshore

wind

Electric

vehiclesRNG

Marine

LNG

Project G

Project M

Project H

Project N

Project I

Project O

Project J

Project P

Project K

Project Q

Project L

Project R

TEAMS & PROJECTS

Embrace Change

31


• Gas Infrastructure➢ Renewable natural gas – waste methane from hog & dairy farms, food waste,

landfills, wastewater treatment

➢ Smithfield Foods partnership – Align RNG

➢ Lowers GHG footprint

• Power Delivery➢ Broadband for underserved rural Virginia

➢ Middle-mile pilot project

• Power Generation➢ Solar site pollinators

➢ Environmental sustainability, reduction

in lawn/weed maintenance

DEVSubstation

DEV fiber optic

network

3rd Party ISP

Embrace Change – Transportation

32


• Help customers reduce greenhouse gas emissions

at home, work & on road➢ Clean EV web application

• Leadership on electric, compressed natural gas vehicles➢ Long-term plan for all fleet vehicles to be EVs or NGVs

➢ Charging & CNG stations

• Marine LNG➢ Ships burn high-emitting bunker oil

➢ Liquefied natural gas would be more environmentally friendly

Actions

33

Environmental, Social & Governance Issues

Board of

Directors

Senior

Leadership

Employees

▪ Sustainability and Corporate Responsibility Committee – five

independent directors – oversees company’s approach to ESG matters

▪ Diverse board

▪ ESG matters addressed at every regularly scheduled meeting

▪ Innovation, Technology and Sustainability Council chaired by CEO

▪ ESG Working Group

▪ Chief Innovation Officer role

▪ Officer-level employee engagement and development position

▪ Leader-led diversity and inclusion training for all employees

▪ Annual Incentive Plan includes safety, environmental, diversity goals

▪ Employee resource groups, diversity councils

▪ Volunteerism program includes volunteer time off for employees

▪ LEED-certified construction for all new workplace projects

Only company to host

ESG Investor Session

One Dominion Energy

One Dominion Energy

35

Major Projects Regulated Mergers

Community,

customer,

employee

achievements

Environmental,

social &

governance

Cove Point

Liquefaction

SCANA Grid Transformation

& Security Act

Carbon & methane

reductions

Power generation

(Greensville,

Brunswick, Warren,

VCHEC, Bear

Garden)

Questar SCE&G bill relief Board refreshment

Atlantic Coast

Pipeline

Carolina Gas

Transmission

Millstone zero-

carbon contract

Disclosure

enhancement

One Dominion Energy

36

• Teamwork builds stronger company➢ Most Admired Gas & Electric Utilities (Fortune)

➢ America’s Best Employers (Forbes)

➢ Best Employers for Diversity (Forbes)

➢ Best Employers for Women (Forbes)

➢ Best Companies for Women (Women’s Choice Award)

➢ Management 250 (The Wall Street Journal)

➢ Top 10 Military-Friendly Company (G.I. Jobs)

➢ Best for Vets (Military Times)

➢ HIRE Vets Medallion, Program Demonstration Award (Platinum)✓ U.S. Department of Labor


2. Five Core Values


4. Growth Plan


6. Summary

Today’s Topics

Unregulated Power

Electric Service Territory

Oil & Gas Production

Gas Pipelines

Storage Field

Gas Service Territory

LNG Import Terminal

Regulated Power

38

Our Footprint – 2007

More Than Decade of Repositioning

39

$40B

Regulated

capex

Regulated generation

Electric transmission

Customer growth

Resiliency enhancements

Cove Point liquefaction

$20B

Regulated

M&A

SCANA

Questar

Carolina Gas Transmission

Iroquois Pipeline

(+)$25B

Unregulated

asset sales

E&P

Merchant generation

Blue Racer Midstream

(-)

Where We Are Today

40

12.5%EPS

growth

10.0%DPS

growth

~$8Bparent-level debt

reduction

+1.7Mutility customers

(SCANA)

GTSAGrid Transformation &

Security Act

~$2.5Bnonregulated asset

sales

Ratings affirmedS&P / Moody’s / Fitch

Our Footprint Today

41

LegendElectric utility service territoryGas utility service territoryUtility electric generationContracted generation

Natural gas pipelineAtlantic Coast PipelineCove Point

Storage

Our Footprint Today


42

LegendElectric utility service territoryGas utility service territoryUtility electric generationContracted generation

Natural gas pipelineAtlantic Coast PipelineCove Point

Storage

Our Footprint Today


$96B

assets21,300

employees

3.3M

customers(gas utility)

7.5M

customers(total)

3.4M

customers(elec. utility)

$61B

market cap

18

states of operation

31GWgeneration

(total capacity)15,900

gas trans.miles

10,200

electric trans. miles

84,800

electric dist. miles

92,900 gas dist.

miles

1.1 Tcfgas storage

11GWgeneration (zero-carbon)

43

Premium Locations

44

Top statesfor business (2018)

Best states for business (2018)

Unemploymentrate (Jan. 2019)

Population growth (2013-18)

#4

#4

#6

#22

#3

#2

#12

#1

#15

#14

#10

#9

#1

#12

#15

#20

Virginia UtahNorth

CarolinaSouth

CarolinaOhio

CNBC

Forbes

U.S. BLS

U.S. Census

Total Return

45

Source: Bloomberg.

201.3%

153.6%

243.0%

0%

50%

100%

150%

200%

250%

300%

2008 YE

2009

YE

2010

YE

2011

YE

2012

YE

2013

YE

2014

YE

2015

YE

2016

YE

2017

YE

2018

Dominion Energy

Philadelphia Utility Sector Index

S&P 500 Index

Operating Earnings

$3.03 $3.09$3.25

$3.43 $3.44

$3.80$3.60

$4.05

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2011 2012 2013 2014 2015 2016 2017 2018 2019

$4.05-$4.40

* Based on non-GAAP Financial Measures. See GAAP Reconciliation on Dominion Energy’s website at dominionenergy.com/investors. Corresponding full-year earnings under GAAP are $2.45 for 2011, $0.53 for 2012, $2.93 for 2013, $2.24 for 2014, $3.20 for 2015, $3.44 per

share in 2016, $4.72 in 2017 and $3.74 per share in 2018. Please refer to the “Important Note to Investors” on slide 2 of this presentation.

46

Do

lla

rs P

er

Sh

are

Earnings Growth (2017-2023)

47

$3.65*

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

2017

midpoint

2018A 2019E 2020E 2021E 2022E 2023E

* Based on non-GAAP Financial Measures. See GAAP Reconciliation on Dominion Energy’s website at dominionenergy.com/investors. Corresponding full-year earnings under GAAP are $4.72 in 2017 and $3.74

per share in 2018. Please refer to the “Important Note to Investors” on slide 2 of this presentation .

6%—8% CAGR

Original Guidance

Do

lla

rs P

er

Sh

are


48

$3.65*

$4.05*

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

2017

midpoint

2018A 2019E 2020E 2021E 2022E 2023E



6%—8% CAGR

Strong 2018 Results

Do

lla

rs P

er

Sh

are


49

$3.65*

$4.05*

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

2017

midpoint

2018A 2019E 2020E 2021E 2022E 2023E

$4.05-4.40



6%—8% CAGR

2019 & 2020 Guidance Issued

6.7% CAGR(within original 6%—8% range)

Do

lla

rs P

er

Sh

are


50

$3.65*

$4.05*

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

2017

midpoint

2018A 2019E 2020E 2021E 2022E 2023E

$4.05-4.40



6%—8% CAGR

2019 & 2020 Guidance Issued

6.7% CAGR(within original 6%—8% range)

Do

lla

rs P

er

Sh

are

~5% per year


51

$3.65*

$4.05*

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

2017

midpoint

2018A 2019E 2020E 2021E 2022E 2023E

$4.05-4.40



6%—8% CAGR6.7% CAGR(within original 6%—8% range)

~5% per year

5%+ post-2020

Do

lla

rs P

er

Sh

are

5%+

Dividends

52

$1.97$2.11

$2.25$2.40

$2.59

$2.80

$3.035

$3.34

$3.67*

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2011 2012 2013 2014 2015 2016 2017 2018 2019

Do

lla

rs P

er

Sh

are

*Subject to quarterly determination and declaration by the Board of Directors.


Dividend Policy

53

$2.80

$3.035

$3.34

$3.67*

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2016A 2017A 2018A 2019E 2020 + Beyond



70% 87%Payout ratio

Do

lla

rs P

er

Sh

are

Dividend Policy

54

$2.80

$3.035

$3.34

$3.67*

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2016A 2017A 2018A 2019E 2020 + Beyond



70% 87%Payout ratio Low 70s%

over time

Do

lla

rs P

er

Sh

are


2. Five Core Values


4. Growth Plan


6. Summary

Today’s Topics

Five-Year Growth Plan

56

$4

$5

$5

$5

$6

2019E 2020E 2021E 2022E 2023E Total

~$26B

~$26B2019-23

growth

capital

Gas

Transmission

& Storage

14%

Dominion Energy SC

8%


Dominion Energy Virginia

57

2019—2023 growth capital ($B)

Transmission

26%

Solar

22%Grid Transformation 10%

Offshore wind 7%

Pumped storage 6%

Enviro/CT/other 7%

Strategic undergrounding 5%

Customer growth 10%

~$17B2019—2023

growth capitalNuclear relicensing 7%


Gas Transmission & Storage

58



ACP

34%

Resiliency

21%

Other

end-use13%

Base

growth32%

$3.6B TOTAL

Gas Distribution

59



$3.5B

Ohio

41%

Utah/Wyo.

31%

N.C.

22%

W.Va.

7% Rider

investment

58%

Customer

growth

and other

42%

$3.5B

Dominion Energy South Carolina

60



$2.1B Electric

76%

Gas

24%

$2.1B

Electric

customer

growth

32%

Electric

environmental

24%

Gas

customer

growth

24%

Grid

transformation

9%

Electric

transmission

5%AMI

6%

Types of Growth Programs

61


• Electric➢ Nuclear relicensing

➢ Renewables

➢ Renewable-enabling gas combustion turbines

➢ Grid transformation

➢ Transmission

➢ Customer growth

➢ Environmental

Types of Growth Programs

62


• Gas➢ Pipeline replacement

➢ Customer, rate base growth

➢ Resiliency

➢ Atlantic Coast Pipeline


2. Five Core Values


4. Growth Plan


6. Summary

Today’s Topics

Charitable Giving

64

$18.5

$23.4$26.6

$28.5

$34.9

$40.0*

$0$5

$10$15$20$25$30$35$40$45$50

2014 2015 2016 2017 2018 2019

In M

illio

ns

of

Do

lla

rs

About a third of a billion dollars

in charitable giving since 2007;

more than $130 million since 2014

*Please refer to the “Important Note to Investors” on slide 2 of this presentation.

Community Volunteerism

65

125,000 126,000

1,400,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2017 2018 2007-2018

Nu

mb

er

of

Ho

urs

Invested in Our Communities

66

• Nearly $35 million in giving in 2018➢ $17 million in Foundation giving

➢ $6 million in direct giving

➢ $12 million to EnergyShare

➢ $320,000 in South Carolina; SCANA contributed $1.6 million in state✓ Expect at least $4.4 million* in charitable giving in SCANA states in 2019

• Volunteer program – 126,000 hours in 2018

• EnergyShare in South Carolina

• Midlands Gives➢ Principal sponsor ($100,000 total)

*Please refer to the “Important Note to Investors” on slide 2 of this presentation.


2. Five Core Values


4. Growth Plan


6. Summary

Today’s Topics

Summary

68

• Premium, low-risk assets in premium locations

• Values-based organization

• Innovative & sustainable

• Trusted community partner

We are 2019 Annual Meeting

of Shareholders

May 7, 2019

Columbia, S.C.

DominionEnergy.com

Documents

We are 2019 Annual Meeting - s2.q4cdn.com · This presentation contains certain forward-looking statements, including forecasted operating earnings for full-year 2019, which are subject