Dominion Energy Inc (D) Q1 2025 Earnings Call Highlights: Strong Performance Amid Tariff Challenges

In This Article:

  • Forward Settled Common Equity: Approximately $1 billion sold under the existing ATM program at an average price of $57.

  • DRIP Related Equity Issuance: Expected to complete $200 million by year-end.

  • Data Center Capacity: Approximately 40 gigawatts in various stages of contracting, with 10 gigawatts under electric service agreements.

  • Offshore Wind Project Cost: Updated project cost of $10.8 billion.

  • Tariff Costs: Actual incurred tariff costs of $4 million through Q1; potential cumulative impact of $500 million by 2026.

  • Residential Customer Bill Impact: Expected to increase by an average of $0.04 per month over the project's life.

  • Project LCOE: $62 per megawatt hour, inclusive of REX.

  • Chesterfield Energy Reliability Center: Expected cost of approximately $1.5 billion, with service commencement in 2029.

  • Millstone Facility Output: Over 90% of Connecticut's carbon-free electricity, with 55% under a fixed price contract through late 2029.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Dominion Energy Inc (NYSE:D) has successfully sold approximately $1 billion of forward settled common equity under its existing ATM program, aligning with its 2025 common equity guidance.

  • The Coastal Virginia Offshore Wind project is progressing well, with 55% completion and on track for full completion by the end of next year, creating approximately 2,000 jobs and generating $2 billion in economic activity.

  • Dominion Energy Inc (NYSE:D) has maintained strong demand from data center customers, with no evidence of slowing demand across its service area.

  • The company has achieved constructive outcomes in all of its regulated service areas, contributing to the success of South Carolina's economy and maintaining reliable service in Virginia.

  • Dominion Energy Inc (NYSE:D) reported a strong first quarter performance, with earnings modestly above expectations, driven by better-than-expected sales and favorable weather conditions.

Negative Points

  • The Coastal Virginia Offshore Wind project faces potential tariff exposure, with cumulative tariff impacts potentially reaching $500 million if current policies continue through 2026.

  • Dominion Energy Inc (NYSE:D) recorded a modest charge this quarter for costs not expected to be recovered from customers, related to the offshore wind project.

  • Residential sales showed slight weakness in the first quarter, although the company does not expect this trend to continue.

  • The company faces uncertainty regarding the impact of tariffs on its solar and storage projects, although it considers these impacts manageable.

  • There is ongoing uncertainty around the final cost of PJM network upgrades, with final numbers expected in July.