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Credit Suisse Energy Summit – Dominion Resources, Inc.

Dominion Resources, Inc. · Feb 8, 2011 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 1
    Dominion Resources, Inc. C dit S Credit Suisse i 2011 E Energy S Summit it February 2011 Visit us online at: www.dom.com/investors Dominions common stock trades under ticker D:NYSE
  2. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 2
    Contents 2010 Highlights g g Dominion 2011-2015 2011 2015 Growth Plan Investment Consideration Please refer to the Important Note to Investors on page 2 of this presentation for risks and uncertainties 3 related to…
  3. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 3
    2010 Highlights Dominion Virginia Power Comprehensive p base rate settlement early y in yyear Proposal to defer first biennial review until 2012 Base rate increase in North Carolina Dominion Energy Appalachian E&P business sold for…
  4. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 4
    2010 Operational Performance Safety performance and service reliability continued to improve despite p 7% workforce reduction from VSP ((voluntary y separation program) Nuclear fleet capacity factor exceeded 90% for seventh year in…
  5. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 5
    2010 Earnings Summary 2010 Operating Earnings: 3.34 per share Drivers: Di Favorable weather Higher rate adjustment clause revenues L Lower iinterest t t expense Lower merchant generation margins Absence of Appalachian E&P…
  6. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 6
    2011 Operating Guidance 2011 operating earnings guidance remains 3.00 - 3.30 per share share** Drivers Lower merchant fleet margins due to lower commodity prices and higher planned outage expenses Normal weather Higher effective…
  7. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 7
    Hedge Update Power Percentage Hedged Description 10/29/10 1/28/11* Increase 2011 Millstone 90% 90% -- Dominion New England Coal (Power) 50% 50% -- 2012 Millstone 30% 70% 40% Dominion New England Coal (Power) 0% 0% -- 2011…
  8. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 8
    Hedging NEPOOL Baseload 80 79 86 79.86 65 67.88 59 90 59.90 /MWh 57.54 54.36 50 50.17 48.85 49.65 47.23 48.23 41 54 41.54 35 20 2009 2010 2011 2012 2013 2014 2015 NEPOOL Baseload - Average Hedge Price…
  9. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 9
    Cash Flow/Financing Bonus Depreciation Bonus depreciation cash benefit estimated between 1.6 billion and 2.5 billion through 2013 Need clarification of rules from IRS Several large construction projects qualify Bear Garden Power…
  10. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 10
    Cash Flow/Financing contd Equity No planned equity issuances in 2011 400 million to 700 million equity repurchase in 2011 No N planned l d market k t equity it iissuances iin 2012 Debt Plan debt issuance of 2.2 billion to…
  11. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 11
    Dominion Growth Plan 2011--2015 2011
  12. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 12
    Regulated Infrastructure Investment 2011--2015 Drivers 2011 Demand growth in electric 2011-2015 Planned Growth Capital Expenditures1 service territory Marcellus Shale 19% 19% infrastructure build-out build out Distribution…
  13. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 13
    Regulated Infrastructure Investment (2011-2015)1 Planned Growth And Environmental Capex (2011- 14.0 10 billion of growth capex plus 1.9 ns) billion utility yggeneration environmental ex (billion 12.0 capex planned for next 5…
  14. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 14
    Utility Generation (2011-2015)1 Planned Growth Capital Expenditures (2011- 6.0 Cumulative Growtth Capitall billions) 7% CAGR in investment over next 5 years 4.0 Expenditures (b 2 0 2.0 3.7 2.9 2.4 1.6 0.6 0.0…
  15. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 15
    Electric Transmission (2011-2015)1 Planned Growth Capital Expenditures (2011- 3.0 12% CAGR in investment over next 5 years h Capital Expenditures (billlions) 2.0 ve Growth Cumulativ 1.0 2.0 1.6 1.3 C 0 9 0.9…
  16. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 16
    Gas Transmission (2011-2015)1 Planned Growth Capital Expenditures (2011- 3.0 9% CAGR in investment over next 5 years e Growth Capital Expenditures (billions) 2 0 2.0 2014-15 does not include up to 1.5 billion in growth…
  17. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 17
    Electric Distribution (2011-2015)1 Planned Growth Capital Expenditures (2011- Growth Drivers 2.5 ures 5% CAGR in investment over next 5 y years umulative Growth Capittal Expenditu Relative Strength of 2.0 Virginia…
  18. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 18
    Gas Distribution (2011-2015)1 Planned Growth Capital Expenditures (2011- 1.5 8% CAGR in investment over next 5 years ve Growth Capital Expendiitures (billions) 1 0 1.0 Cumulativ 0.5 0.9 0.7 0 5 0.5 C 0.3 0.2…
  19. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 19
    Environmental Compliance Capital Expenditures 2.0 billion in potential 2011-2015 Potential additional generation Additional Generation Environmental Capital environmental capital Expenditures1 expenditures In Virginia, utility…
  20. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 20
    Regulated Infrastructure Investment 2011--2015 Growth Capital Expenditure Summary1 (billions) 2011 2011- 2011- 2011- 2011- Investment Area 2011 CAGR 2012 2013 2014 2015 Utility Generation 0.6 1.6 2.4 2.9 3.7 7% Electric Transmission…
  21. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 21
    Investment Consideration
  22. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 22
    Investment Consideration Expected Recommendation to Board of Directors 2.50 Target 60 65% payout ratio* ratio 2.05 to 2.15* end Per Share 1.97 1.83 1.89 1 75 1.75 1.58 1.46 Divide 0.00 2007 2008 2009 2010 2011*…
  23. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 23
    Investment Consideration Summary Regulated infrastructure investment plan underway to support future earnings growth Track record of successful execution Transparent growth prospects 5-6% average annual operating earnings growth…
  24. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 24
    Visit our website at: www.dom.com/investors
  25. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 25
    Appendix
  26. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 26
    Dominion Profile Power and Natural Gas Infrastructure Leading provider of energy and energy services in the Midwest, Northeast and Mid-Atlantic regions of the U.S. 27,600 MW of electric generation 6,000 miles of electric transmission…
  27. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 27
    Planned Total Capital Expenditures 2011--20131 2011 1 Dominion - Consolidated Capital Expenditure Plan for 2011 - 2013 (mm) Dominion Virginia Power Dominion Energy Dominion Generation Corporate Dominion Electric Electric DVP…
  28. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 28
    Dominion p y and NGL8 Hedge Power,, Fuel,, Capacity g Positions (as ( of Jan. 28,, 2011)) Net Summer Merchant Generation Capacity Power & Fuel - Hedging & Pricing (MW) 2011 2012 1 Non-Contracted Hedge Positions Millstone 2,016…
  29. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 29
    Utility Generation Regulated Infrastructure Investment Project/Program 2008 2009 2010 2011 2012 2013 2014 2015 Ladysmith Units 3-5 481 MW Peaker Uprates 214 MW F&H Baseload & CC 111 MW 148 MW U Uprates t Nuclear Uprates* 70 MW 164…
  30. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 30
    Electric Transmission Regulated Infrastructure Investment Project/Program 2008 2009 2010 2011 2012 2013 2014 2015 Rosslyn Line In Service Pleasant View to In Service Hamilton Meadow M d Brook B k tto 98 % Under Construction Loudoun…
  31. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 31
    Electric Transmission Dominion Dominions s 500 kV Loop Replacement Dominions 500 kV Loop is the backbone of reliability for DomZone and serves as strategic intersection of PJM West to East power flows Mt. Storm to Doubs Under…
  32. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 32
    Gas Transmission Regulated Infrastructure Investment1 Project/Program 2008 2009 2010 2011 2012 2013 2014 2015 WV Pipeline Expansion In Service Cove Point Exp. In Service USA Storage In Service Dominion Hub I-III In Service Pier…
  33. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 33
    Regulated Gas Operations Market Market Area Pipeline and New Supply Area Pipeline Dominions location creates a competitive advantage in building infrastructure to support Marcellus production growth Please refer to the…
  34. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 34
    Regulated Gas Operations 2010 In In--Service Rural Valley Albany -Firm Transportation - 57,500 dth/d -Delivery Pt : Oakford, PA -In-Service: April 1, 2010 Leidy Dominion HUB II -Firm Transportation - 20,000 dth/d -Receipt Pt:…
  35. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 35
    Regulated Gas Operations Under Construction/Filed at FERC Gathering Enhancement Project - Designed to increase efficiency and reduce high pressures in DTIs gathering system - In-Service: Sept 2012 (Expected) - Facilities: 7,000 hp at nine…
  36. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 36
    Regulated Gas Operations PAss Executed/Under Development PA Northeast Expansion Project - 200,000 dt/d Firm Transportation Ellisburg to Craigs - Marcellus production delivered to Leidy Leidy - 150,000 dt/d Capacity - In-Service Nov.…
  37. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 37
    Financing Plan Long-term Funding Requirements Long- Debt Maturities as of December 31, 2010 900 800 700 600 milllions 500 DRI 400 VEPCO 300 200 100 0 2011 2012 2013 Please refer to the Important Note to Investors on…
  38. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 38
    GAAP Reconciliation 2010 Earnings Actual 2010 Earnings (Twelve months ended December 31, 2010)1 The net effects of the following items, all shown on an after-tax basis, are included in 2010 reported earnings, but are excluded from…
  39. Credit Suisse Energy Summit – Dominion Resources, Inc. – slide 39
    Investor Relations Contact Information Thomas E. Hamlin Vice President Financial Analysis & Investor Relations (804) 819-2154 Thomas.E.Hamlindom.com Nathan J. Frost Sarah M. Scott Investor Relations Specialist Investor Relations…

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