Dominion Energy Announces Fourth-Quarter and Full-Year 2022 Earnings

Dominion Energy, Inc. 

Consolidated Statements of Income *

Unaudited (GAAP Based)

(millions, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2022

2021

2022

2021

Operating Revenue

$      4,913

$     3,880

$      17,174

$      13,964

Operating Expenses

Electric fuel and other energy-related purchases

1,086

628

3,711

2,368

Purchased electric capacity

14

8

59

70

Purchased gas

597

418

1,582

1,083

Other operations and maintenance¹

2,436

1,037

6,473

4,037

Depreciation, depletion and amortization

710

645

2,830

2,478

Other taxes

204

207

923

909

  Total operating expenses

5,047

2,943

15,578

10,945

Income (loss) from operations

(134)

937

1,596

3,019

Other income (expense)²

339

487

423

1,433

Interest and related charges

416

376

966

1,354

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

(211)

1,048

1,053

3,098

Income tax expense (benefit)

(175)

225

68

425

Net Income (loss) from continuing operations including noncontrolling interests

(36)

823

985

2,673

Net Income (loss) from discontinued operations including noncontrolling interests

(6)

522

9

641

Net Income (loss) including noncontrolling interests

$          (42)

$     1,345

$            994

$        3,314

Noncontrolling interests

-

4

-

26

$          (42)

$     1,341

$            994

$        3,288

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

$      (0.06)

$       0.99

$           1.08

$          3.19

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

(0.01)

0.64

0.01

0.79

Reported Income (loss) per common share - diluted

$      (0.07)

$       1.63

$           1.09

$          3.98

Average shares outstanding, diluted

833.7

811.0

824.8

808.5

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. 

Schedule 1 - Segment Reported and Operating Earnings

Unaudited

(millions, except per share amounts)

Three months ended December 31,

2022

2021

Change

REPORTED EARNINGS¹

$          (42)

$       1,341

$     (1,383)

     Pre-tax loss (income)²

1,255

(761)

2,016

     Income tax²

(310)

172

(482)

Adjustments to reported earnings

945

(589)

1,534

OPERATING EARNINGS

$          903

$          752

$          151

     By segment:

     Dominion Energy Virginia

433

455

(22)

     Gas Distribution

211

185

26

     Dominion Energy South Carolina

97

100

(3)

     Contracted Assets

93

58

35

     Corporate and Other

69

(46)

115

$          903

$          752

$          151

Earnings Per Share (EPS):³

REPORTED EARNINGS ¹

$       (0.07)

$         1.63

$       (1.70)

Adjustments to reported earnings (after tax)

1.13

(0.73)

1.86

OPERATING EARNINGS

$         1.06

$         0.90

$         0.16

     By segment:

     Dominion Energy Virginia

0.52

0.56

(0.04)

     Gas Distribution

0.25

0.23

0.02

     Dominion Energy South Carolina

0.12

0.12

-

     Contracted Assets

0.11

0.07

0.04

     Corporate and Other

0.06

(0.08)

0.14

$         1.06

$         0.90

$         0.16

Common Shares Outstanding (average, diluted)

834.1

811.0

(millions, except earnings per share)

Twelve months ended December 31,

2022

2021

Change

REPORTED EARNINGS¹

$          994

$       3,288

$     (2,294)

     Pre-tax loss (income)²

3,127

(26)

3,153

     Income tax²

(616)

(71)

(545)

Adjustments to reported earnings

2,511

(97)

2,608

OPERATING EARNINGS

$       3,505

$       3,191

$          314

     By segment:

     Dominion Energy Virginia

2,008

1,919

89

     Gas Distribution

697

600

97

     Dominion Energy South Carolina

505

437

68

     Contracted Assets

335

431

(96)

     Corporate and Other

(40)

(196)

156

$       3,505

$       3,191

$          314

Earnings Per Share (EPS):³

REPORTED EARNINGS¹

$         1.09

$         3.98

$       (2.89)

Adjustments to reported earnings (after tax)

3.02

(0.12)

3.14

OPERATING EARNINGS

$         4.11

$         3.86

$         0.25

     By segment:

     Dominion Energy Virginia

2.44

2.37

0.07

     Gas Distribution

0.85

0.74

0.11

     Dominion Energy South Carolina

0.61

0.54

0.07

     Contracted Assets

0.41

0.53

(0.12)

     Corporate and Other

(0.20)

(0.32)

0.12

$         4.11

$         3.86

$         0.25

Common Shares Outstanding (average, diluted)

833.0

808.5

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.

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 a
reported net loss for the three months ended 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. In prior periods, a fair value adjustment of the Series A preferred stock was
included in the calculation of diluted reported earnings per share if dilutive. No adjustments were necessary for the three and twelve months ended
December 31, 2021. 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 twelve months ended December 31, 2022 also includes the impact of preferred dividends associated with Series A preferred stock of $12
million. During each quarter of 2021, the calculation of reported and operating earnings per share includes the impact of preferred dividends
associated with preferred stock of $7 million (Series A) and $9 million (Series B). In addition, the fourth quarter of 2021 includes $3 million of
preferred dividends associated with the Series C preferred stock issued in December 2021. See Forms 10-Q and 10-K for additional information.

(millions, except per share amounts)

1Q22

2Q22

3Q22

4Q22

YTD 2022³

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. divestiture⁴

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.

(millions, except per share amounts)

1Q21

2Q21

3Q21

4Q21

YTD 2021³

Reported earnings

$      1,008

$              285

$          654

$      1,341

$         3,288

Adjustments to reported earnings¹:

    Pre-tax loss (income)

(152)

474

413

(761)

(26)

    Income tax

37

(131)

(149)

172

(71)

(115)

343

264

(589)

(97)

Operating earnings

$          893

$              628

$          918

$          752

$         3,191

Common shares outstanding (average, diluted) 

805.9

806.6

810.0

811.0

808.5

Reported earnings per share²

$        1.23

$            0.33

$        0.79

$        1.63

$           3.98

Adjustments to reported earnings per share²

(0.14)

0.43

0.32

(0.73)

(0.12)

Operating earnings per share²

$        1.09

$            0.76

$        1.11

$        0.90

$           3.86

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

1Q21

2Q21

3Q21

4Q21

YTD 2021

Pre-tax loss (income):

    Net (gain) loss on NDT funds

$       (134)

$           (194)

$            19

$       (259)

$          (568)

    Mark-to-market impact of economic hedging activities

(278)

291

284

(37)

260

    Discontinued operations - Gas Transmission & Storage segment

(35)

(30)

(59)

(705)

(829)

    Regulated asset retirements and other charges

100

278

119

67

564

    Sales of non-wholly-owned nonregulated solar facilities

-

-

23

212

235

    Merger litigation and integration charges

71

48

8

(28)

99

    Workplace realignment

71

-

17

(11)

77

    Storm damage and restoration costs

51

17

-

-

68

    Kewaunee decommissioning revision

-

44

-

-

44

    Other

2

20

2

-

24

$       (152)

$              474

$          413

$       (761)

$            (26)

Income tax expense (benefit):

   Tax effect of above adjustments to reported earnings*

37

(131)

(140)

204

(30)

   Other

-

-

(9)

(32)

(41)

$            37

$           (131)

$       (149)

$          172

$            (71)

* Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes,

   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 operating earnings per share excludes the impact, if any, of fair value adjustments related to the Company's convertible preferred

   securities entered in June 2019. Such fair value adjustments, if any, are required for the calculation of diluted reported earnings per share. No

   adjustments were necessary for the three months ended March 31, June 30 or September 30 or for the three and twelve months ended December 31. 

   During each quarter of 2021, the calculation of reported and operating earnings per share includes the impact of preferred dividends of $7 million

    associated with the Series A preferred stock equity units and $9 million associated with the Series B preferred stock equity units. In addition, the 

   fourth quarter of 2021 includes $3 million of preferred dividends associated with the Series C preferred stock issued in December 2021. 

   See Forms 10-Q and 10-K for additional information.

³⁾  YTD EPS may not equal sum of quarters due to share count difference and fair value adjustment associated with the convertible preferred 

   securities.

Schedule 4 - Reconciliation of 2022 Earnings to 2021

Preliminary, Unaudited

Three Months Ended

Twelve Months Ended

(millions, except EPS)

December 31,

December 31,

2022 vs. 2021

2022 vs. 2021

Increase / (Decrease)

Increase / (Decrease)

Reconciling Items

Amount

EPS

Amount

EPS

Change in reported earnings (GAAP)

($1,383)

($1.70)

($2,294)

($2.89)

Change in Pre-tax loss (income) ¹

2,016

3,153

Change in Income tax ¹

(482)

(545)

Adjustments to reported earnings

$1,534

$1.86

$2,608

$3.14

Change in consolidated operating earnings

$151

$0.16

$314

$0.25

Dominion Energy Virginia 

Weather

$20

$0.02

$21

$0.03

Customer usage and other factors

(16)

(0.02)

25

0.03

Customer-elected rate impacts

(29)

(0.03)

13

0.02

Base rate case impacts

(8)

(0.01)

(41)

(0.05)

Rider equity return

8

0.01

64

0.08

Renewable energy investment tax credits

14

0.02

65

0.08

Storm damage and service restoration

(11)

(0.01)

(17)

(0.02)

Interest expense, net

3

-

(13)

(0.02)

Other

(3)

-

(28)

(0.03)

Share dilution

(0.02)

(0.05)

Change in contribution to operating earnings

($22)

($0.04)

$89

$0.07

Gas Distribution

Weather

$1

-

$4

-

Customer usage and other factors

32

0.04

57

0.07

Base rate case impacts

(4)

(0.01)

29

0.04

Rider equity return

6

0.01

25

0.03

Interest expense, net

(9)

(0.01)

(16)

(0.02)

Other

-

-

(2)

-

Share dilution

(0.01)

(0.01)

Change in contribution to operating earnings

$26

$0.02

$97

$0.11

Dominion Energy South Carolina 

Weather

$3

-

$21

$0.03

Customer usage and other factors

(13)

(0.01)

14

0.02

Customer-elected rate impacts

(1)

-

14

0.02

Base & RSA rate case impacts

3

-

22

0.03

Interest expense, net

(6)

-

(16)

(0.02)

Other

11

0.01

13

-

Share dilution

-

(0.01)

Change in contribution to operating earnings

($3)

-

$68

$0.07

Contracted Assets

Margin

$8

$0.01

$11

$0.01

Sale of non-wholly-owned nonregulated solar facilities

(1)

-

(20)

(0.02)

Planned outage costs

25

0.03

(19)

(0.02)

Renewable energy investment tax credits

-

-

(29)

(0.04)

Interest expense, net

(11)

(0.01)

(50)

(0.06)

Other

14

0.01

11

0.02

Share dilution

-

(0.01)

Change in contribution to operating earnings

$35

$0.04

($96)

($0.12)

Corporate and Other 

Other

$115

$0.14

$156

$0.12

Change in contribution to operating earnings

$115

$0.14

$156

$0.12

Change in consolidated operating earnings

$151

$0.16

$314

$0.25

Change in adjustments included in reported earnings¹

($1,534)

($1.86)

($2,608)

($3.14)

Change in consolidated reported earnings

($1,383)

($1.70)

($2,294)

($2.89)

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