Dominion Energy Announces First-Quarter 2023 Earnings

Dominion Energy, Inc.

Consolidated Statements of Income *

Unaudited (GAAP Based)

Three Months Ended

March 31,

(millions, except per share amounts)

2023

2022

Operating Revenue

$

5,252

$

4,279

Operating Expenses

Electric fuel and other energy-related purchases

1,022

678

Purchased electric capacity

8

13

Purchased gas

764

645

Other operations and maintenance⁽¹⁾

1,018

1,016

Depreciation, depletion and amortization

720

698

Other taxes

275

253

  Total operating expenses

3,807

3,303

Income (loss) from operations

1,445

976

Other income (expense)⁽²⁾

364

126

Interest and related charges

586

174

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

1,223

928

Income tax expense

221

236

Net Income (loss) from continuing operations including
     noncontrolling interests

1,002

692

Net Income (loss) from discontinued operations including
     noncontrolling interests

(5)

19

Net Income (loss) attributable to Dominion Energy

$

997

$

711

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

$

1.18

$

0.81

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

(0.01)

0.02

Reported Income (loss) per common share - diluted

$

1.17

$

0.83

Average shares outstanding, diluted

835.5

832.0

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

(2)  Includes earnings from equity method investees.

*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.

(millions, except per share amounts)

2023

2022

Change

REPORTED EARNINGS⁽¹⁾

$

997

$

711

$

286

Pre-tax loss (income)⁽²⁾

(206)

255

(461)

Income tax⁽²⁾

58

34

24

Adjustments to reported earnings

(148)

289

(437)

OPERATING EARNINGS

$

849

$

1,000

$

(151)

By segment:

Dominion Energy Virginia

386

518

(132)

Gas Distribution

278

294

(16)

Dominion Energy South Carolina

91

109

(18)

Contracted Assets

156

101

55

Corporate and Other

(62)

(22)

(40)

$

849

$

1,000

$

(151)

Earnings Per Share (EPS)⁽³⁾:

REPORTED EARNINGS⁽¹⁾

$

1.17

$

0.83

$

0.34

Adjustments to reported earnings (after-tax)

(0.18)

0.35

(0.53)

OPERATING EARNINGS

$

0.99

$

1.18

$

(0.19)

By segment:

Dominion Energy Virginia

0.46

0.64

(0.18)

Gas Distribution

0.33

0.36

(0.03)

Dominion Energy South Carolina

0.11

0.13

(0.02)

Contracted Assets

0.19

0.13

0.06

Corporate and Other

(0.10)

(0.08)

(0.02)

$

0.99

$

1.18

$

(0.19)

Common Shares Outstanding (average, diluted)     

835.5

832.0

(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, reflected in the Corporate and Other segment. Effective January 2022, the calculation
of diluted reported and operating earnings per share assumes conversion, if dilutive, of the Series A preferred stock to common stock as of January 1, 2022.
The Series A preferred stock was reclassified to a liability in June 2022 and redeemed in September 2022. For the three months ended March 31, 2023
and 2022, 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)

1Q23

2Q23

3Q23

4Q23

YTD 2023

Reported earnings

$

997

$

997

Adjustments to reported earnings⁽¹⁾:

Pre-tax loss (income)

(206)

(206)

Income tax

58

58

(148)

(148)

Operating earnings

$

849

$

849

Common shares outstanding (average, diluted)

835.5

835.5

Reported earnings per share⁽²⁾

$

1.17

$

1.17

Adjustments to reported earnings per share⁽²⁾

(0.18)

(0.18)

Operating earnings per share⁽²⁾

$

0.99

$

0.99

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

1Q23

2Q23

3Q23

4Q23

YTD 2023

Pre-tax loss (income):

Net loss (gain) on NDT funds

$

(123)

$

(123)

Mark-to-market impact of economic hedging activities

(231)

(231)

Net loss (gain) on real estate dispositions

81

81

Regulated asset retirements and other charges

61

61

Discontinued operations - Gas Transmission & Storage segment

6

6

$

(206)

$

(206)

Income tax expense (benefit):

Tax effect of above adjustments to reported earnings⁽³⁾

58

58

$

58

$

58

(millions, except per share amounts)

1Q22

2Q22

3Q22

4Q22

YTD 2022⁽³⁾

Reported earnings

$

711

$

(453)

$

778

$

(42)

$

994

Adjustments to reported earnings⁽¹⁾:

Pre-tax loss (income)

255

1,383

234

1,255

3,127

Income tax

34

(272)

(68)

(310)

(616)

289

1,111

166

945

2,511

Operating earnings

$

1,000

$

658

$

944

$

903

$

3,505

Common shares outstanding (average, diluted)

832.0

832.5

833.2

834.1

833.0

Reported earnings per share⁽²⁾

$

0.83

$

(0.58)

$

0.91

$

(0.07)

$

1.09

Adjustments to reported earnings per share⁽²⁾

0.35

1.35

0.20

1.13

3.02

Operating earnings per share⁽²⁾

$

1.18

$

0.77

$

1.11

$

1.06

$

4.11

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

1Q22

2Q22

3Q22

4Q22

YTD 2022

Pre-tax loss (income):

Net loss (gain) on NDT funds

$

125

$

454

$

112

$

(132)

$

559

Mark-to-market impact of economic hedging activities

(4)

(193)

24

(335)

(508)

Discontinued operations - Gas Transmission & Storage segment

(25)

3

3

2

(17)

Nonregulated asset impairments and other charges*

-

-

-

1,511

1,511

Regulated asset retirements and other charges

65

470

112

183

830

Sale of Kewaunee

-

649

-

-

649

Storm damage and restoration costs

94

-

-

31

125

Sale of Hope Gas, Inc.

-

-

(17)

(5)

(22)

$

255

$

1,383

$

234

$

1,255

$

3,127

Income tax expense (benefit):

Tax effect of above adjustments to reported earnings**

(53)

(275)

22

(310)

(616)

Deferred taxes associated with Hope Gas, Inc. divestiture⁽⁴⁾

87

3

(90)

-

-

$

34

$

(272)

$

(68)

$

(310)

$

(616)

* In the fourth quarter of 2022, Dominion Energy determined that its nonregulated solar generation assets within the Contracted Assets segment were impaired following the determination that it expects it is more likely than not such assets will be sold before the end of their useful lives.

** 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.

(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. As a result of reported net losses for the three months ended June 30, and December 31, 2022, any adjustments to earnings or shares would be considered antidilutive and are excluded from the calculation of diluted earnings per share. Effective January 2022, the calculation of diluted reported and operating earnings per share assumes conversion, if dilutive, of the Series A preferred stock to common stock as of January 1, 2022. The Series A preferred stock was reclassified to a liability in June 2022 and redeemed in September 2022. During each quarter of 2022, 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, issued in December 2021). Reported earnings per share for the three months ended June 30, 2022 and the twelve months ended December 31, 2022 also includes the impact of preferred dividends associated with Series A preferred stock of $5 million and $12 million, respectively. See Forms 10-Q and 10-K for additional information.

(3)

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

(4)

Represents deferred taxes related to the basis in Hope Gas, Inc.'s stock that reversed when the sale closed in the third quarter of 2022. This charge is reflected as a component of current income tax expense on the sale in the third quarter of 2022.

Three Months Ended

March 31,

2023 vs. 2022

(millions, except per share amounts)

Increase / (Decrease)

Reconciling Items

Amount

EPS

Change in reported earnings (GAAP)

$

286

$

0.34

Change in Pre-tax loss (income)⁽¹⁾

(461)

(0.56)

Change in Income tax⁽¹⁾

24

0.03

Adjustments to reported earnings

$

(437)

$

(0.53)

Change in consolidated operating earnings

$

(151)

$

(0.19)

Dominion Energy Virginia

Weather

$

(67)

$

(0.08)

Customer usage and other factors

33

0.04

Customer-elected rate impacts

(21)

(0.03)

Rider equity return

32

0.04

Depreciation and amortization

(6)

(0.01)

Renewable energy investment tax credits

(57)

(0.07)

Interest expense, net

(13)

(0.02)

Other

(33)

(0.04)

Share dilution

-

(0.01)

Change in contribution to operating earnings

$

(132)

$

(0.18)

Gas Distribution

Weather

$

(4)

$

-

Customer usage and other factors

7

0.01

Base rate case impacts

16

0.02

Rider equity return

3

-

Sale of Hope Gas, Inc.

(19)

(0.02)

Interest expense, net

(12)

(0.01)

Other

(7)

(0.02)

Share dilution

-

(0.01)

Change in contribution to operating earnings

$

(16)

$

(0.03)

Dominion Energy South Carolina

Weather

$

(19)

$

(0.02)

Customer usage and other factors

7

0.01

Customer-elected rate impacts

(7)

(0.01)

Base & RSA rate case impacts

5

0.01

Interest expense, net

(6)

(0.01)

Other

2

-

Share dilution

-

-

Change in contribution to operating earnings

$

(18)

$

(0.02)

Contracted Assets

Margin

$

49

$

0.06

Planned outage costs

3

-

Interest expense, net

(5)

(0.01)

Other

8

0.02

Share dilution

-

(0.01)

Change in contribution to operating earnings

$

55

$

0.06

Corporate and Other

Interest expense, net

$

(41)

$

(0.05)

Other

1

-

Share dilution

-

0.03

Change in contribution to operating earnings

$

(40)

$

(0.02)

Change in consolidated operating earnings

$

(151)

$

(0.19)

Change in adjustments included in reported earnings⁽¹⁾

$

437

$

0.53

Change in consolidated reported earnings

$

286

$

0.34

(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.

NOTE: Figures may not sum due to rounding.