Dominion Announces First-Quarter 2013 Earnings

                Dominion Announces First-Quarter 2013 Earnings

- First-quarter 2013 operating earnings of 83 cents per share compared to
guidance of 80 cents to 95 cents

- First-quarter 2013 GAAP earnings of 86 cents per share

- Company affirms 2013 operating earnings guidance of $3.20 to $3.50 per share

- Conference call scheduled for 10 a.m. ET today

PR Newswire

RICHMOND, Va., April 25, 2013

RICHMOND, Va., April 25, 2013 /PRNewswire/ -- Dominion (NYSE: D) today
announced unaudited reported earnings determined in accordance with Generally
Accepted Accounting Principles (GAAP) for the three months ended March 31,
2013, of $495 million ($0.86 per share), compared to $494 million ($0.86 per
share) for the same period in 2012. 

Operating earnings for the three months ended March 31, 2013, amounted to $476
million ($0.83 per share), compared to originally reported operating earnings
of $486 million ($0.85 per share) for the same period in 2012. Operating
earnings are defined as reported (GAAP) earnings adjusted for certain items.

Dominion uses operating earnings as the primary performance measurement of its
earnings guidance and results for public communications with analysts and
investors. Dominion also uses operating earnings internally for budgeting,
for reporting to the Board of Directors, for the company's incentive
compensation plans and for its targeted dividend payouts and other purposes.
Dominion management believes operating earnings provide a more meaningful
representation of the company's fundamental earnings power.

The principal difference between GAAP earnings and operating earnings for the
quarter is related to our investments in nuclear decommissioning trust funds.

Business segment results and detailed descriptions of items included in 2013
and 2012 reported earnings but excluded from operating earnings can be found
on Schedules 1, 2 and 3 of this release.

Thomas F. Farrell II, chairman, president and chief executive officer, said:

"Our first-quarter results came in below the midpoint of our guidance range of
$0.80 to $0.95 reflecting the impact of higher than normal storm and service
restoration activity, the delayed in-service date of our Natrium processing
plant, lower merchant generation margins and lower than expected electric
sales. Despite the challenging quarter, we remain committed to delivering 5
percent to 6 percent earnings per share growth this year.

"Our long-term growth plan continued to progress at our Dominion Virginia
Power and Generation business segments, with both making strides on numerous
projects that will provide the foundation for expected future earnings
growth.

"We also achieved several milestones in our Cove Point LNG liquefaction
project. With the signing of 20-year Terminal Service Agreements with two
companies, the capacity of the project is fully subscribed. We also executed
an Engineering, Procurement, and Construction (EPC) agreement for the
liquefaction facilities and submitted our application to the Federal Energy
Regulatory Commission. Subject to receipt of regulatory approvals, we expect
to begin construction in 2014, with an in-service date in 2017.

First-quarter 2013 operating earnings compared to 2012

The decrease in first-quarter 2013 operating earnings per share as compared to
originally reported first-quarter 2012 operating earnings per share is
primarily attributable to lower merchant generation margins, higher than
expected storm and service restoration costs, and lower contributions from
unregulated retail energy marketing operations. Positive factors for the
quarter were higher weather-related sales in our service territory, higher
revenues related to our gas transmission growth projects, and the benefit from
our contribution of assets to the Blue Racer Midstream joint venture.

Details of first-quarter 2013 operating earnings as compared to 2012 can be
found on Schedule 4 of this release.

Second-quarter 2013 and full-year 2013 operating earnings guidance

Dominion expects second-quarter 2013 operating earnings in the range of 60
cents per share to 70 cents per share as compared to second-quarter 2012
operating earnings of 59 cents per share. Positive factors for the
second-quarter of 2013 compared to the same period of the prior year include
an expected return to normal weather in our electric service territory, higher
rate adjustment clause revenues and anticipated growth in our electric service
territory and higher revenues related to our gas transmission growth projects.
Negative factors for the quarter include a planned refueling outage at
Millstone Power Station and lower contributions from unregulated retail energy
marketing operations. GAAP earnings for the second quarter of 2012 were 45
cents per share. A reconciliation between operating and GAAP earnings for the
second quarter of 2012 can be found on Schedule 3 of this release.

Amounts for 2012 have been recast to reflect results for Brayton Point and
Kincaid generating stations as discontinued operations. However, Dominion
uses originally reported 2012 amounts prior to recast to calculate operating
earnings growth targets as well as for comparison to 2012 and 2013 operating
earnings and statistics.

In providing its second-quarter and full-year 2013 operating earnings
guidance, the company notes that there could be differences between expected
reported earnings and estimated operating earnings for matters such as, but
not limited to, divestitures or changes in accounting principles. At this
time, Dominion management is not able to estimate the aggregate impact, if
any, of these items on reported earnings, other than those as set forth on
Schedule 2 – Reconciliation of 2013 Operating Earnings to Reported Earnings on
page 8 of the 1Q13 Earnings Release Kit. Accordingly, the company is not able
to provide a corresponding GAAP equivalent for its operating earnings
guidance.

Conference call today

Dominion will host its first-quarter earnings conference call at 10 a.m. ET on
Thursday, April 25. Dominion management will discuss its first-quarter
financial results and other matters of interest to the financial community.

Domestic callers should dial (866) 710-0179. The passcode for the conference
call is "Dominion." International callers should dial (334) 323-9872.
Participants should dial in 10 to 15 minutes prior to the scheduled start
time. Members of the media also are invited to listen.

A live webcast of the conference call, including accompanying slides, and the
Earnings Release Kit will be available on the company's investor information
page at www.dom.com/investors.

A replay of the conference call will be available beginning about 1 p.m. ET
April 25 and lasting until 11 p.m. ET May 2. Domestic callers may access the
recording by dialing (877) 919-4059. International callers should dial (334)
323-7226. The PIN for the replay is 34115675. Additionally, a replay of the
webcast will be available on the company's investor information page by the
end of the day April 25.

Dominion is one of the nation's largest producers and transporters of energy,
with a portfolio of approximately 27,500 megawatts of generation, 11,000 miles
of natural gas transmission, gathering and storage pipeline, and 6,300 miles
of electric transmission lines. Dominion operates one of the nation's largest
natural gas storage systems with 947 billion cubic feet of storage capacity
and serves retail energy customers in 15 states. For more information about
Dominion, visit the company's website at www.dom.com.

This release contains certain forward-looking statements, including forecasted
operating earnings for second-quarter and full-year 2013 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 the electric industry, changes in the demand for Dominion's
services, access to and costs of capital, fluctuations in the value of our
pension assets and assets held in our decommissioning trusts, impacts of
acquisitions, divestitures, retirements of assets based on asset portfolio
reviews, the receipt of regulatory approvals for, and timing of, planned
projects, acquisitions and divestitures, 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 limited to, weather
conditions and other events, including the effects of hurricanes, earthquakes,
high winds, major storms and changes in water temperatures on operations, the
risk associated with the operation of nuclear facilities, unplanned outages of
Dominion's generation facilities, state and federal legislative and regulatory
developments and changes to environmental and other laws and regulations,
including those related to climate change, greenhouse gases and other
emissions to which we are subject, political and economic conditions,
industrial, commercial and residential growth or decline in Dominion'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, changes to rating agency requirements and ratings,
changing financial accounting standards, fluctuations in interest rates,
changes in federal and state tax laws, employee workforce factors, including
collective bargaining, counter-party credit and performance risks, adverse
outcomes in litigation matters or regulatory proceedings, the risk of hostile
cyber intrusions and other uncertainties. Other risk factors are detailed
from time to time in Dominion's most recent quarterly report on Form 10-Q or
annual report on Form 10-K filed with the Securities and Exchange Commission.





Schedule 1 - Segment Operating Earnings
Preliminary, Unaudited
(millions, except earnings per Three months ended March 31,
share)
                               2013               2012*          Change
Earnings:
                               $           $        $      
   Dominion Virginia Power         142                      
                                                  166              (24)
   Dominion Energy             179                149            30
   Dominion Generation        227                222            5
   Corporate and Other         (72)               (51)           (21)
                               $           $        $      
   OPERATING EARNINGS              476                      
                                                  486              (10)
   Items excluded from         19                 8              11
   operating earnings^2, 3
                               $           $        $      
   REPORTED EARNINGS ^1            495                      
                                                  494                1
Common Shares Outstanding      577.5              571.9
(average, diluted)
Earnings Per Share (EPS):
                               $           $        $      
   Dominion Virginia Power         0.25                       
                                                  0.29          (0.04)
   Dominion Energy             0.31               0.26           0.05
   Dominion Generation        0.39               0.39           -
   Corporate and Other         (0.12)             (0.09)         (0.03)
                               $           $        $      
   OPERATING EARNINGS              0.83                       
                                                  0.85          (0.02)
   Items excluded from         0.03               0.01           0.02
   operating earnings^2
                               $           $        $      
   REPORTED EARNINGS ^1            0.86                       
                                                  0.86             -
   1)         Determined in accordance with Generally Accepted Accounting
              Principles (GAAP).
              Items excluded from operating earnings are reported in Corporate
   2)         and Other segment. Refer to Schedules 2 and 3 for details, or
              find "GAAP Reconciliation" on Dominion's website at
              www.dom.com/investors.
   3)         Pre-tax amounts for the current period and the prior period are
              $31 million and $13 million, respectively.
   *Reflects amounts as originally reported prior to recast of results for
   Brayton Point and Kincaid generating stations as discontinued operations.



Schedule 2 - Reconciliation of 2013 Operating Earnings to Reported Earnings

2013 Earnings (Three months ended March 31, 2013) 

The net effects of the following items, all shown on an after-tax basis, are
included in 2013 reported earnings, but are excluded from operating earnings:

  o$20 million net gain related to our investments in nuclear decommissioning
    trust funds.
  o$1 million net loss related to other items, including the discontinued
    operations of two merchant power stations (Brayton Point and Kincaid).

(millions, except per share amounts)           1Q13   2Q13  3Q13 4Q13 YTD 2013
Operating earnings                            $476                   $476
Items excluded from operating earnings
(after-tax):
    Net gain in nuclear decommissioning trust  20                     20
    funds
    Other items                                (1)                    (1)
    Total items excluded from operating        19                     19
    earnings (after-tax) ^1
Reported net income                            $495                   $495
Common shares outstanding (average, diluted)  577.5                  577.5
Operating earnings per share                   $0.83                  $0.83
Items excluded from operating earnings         0.03                   0.03
(after-tax)
Reported earnings per share                    $0.86                  $0.86
^1) Pre-tax amounts for items excluded from operating earnings are reflected
    in the following table:
    Items excluded from operating earnings:    1Q13   2Q13  3Q13 4Q13 YTD 2013
    Net gain in nuclear decommissioning trust  34                     34
    funds
    Other items                                (3)                    (3)
    Total items excluded from operating        $31    $0    $0   $0   $31
    earnings



Schedule 3 - Reconciliation of 2012 Operating Earnings to Reported Earnings

2012 Earnings (Twelve months ended December 31, 2012) ^3

The net effects of the following items, all shown on an after-tax basis, are
included in 2012 reported earnings, but are excluded from operating earnings:

  o$1.1 billion net loss, including an impairment charge, associated with
    certain fossil fuel-fired merchant power stations which Dominion decided
    to market for sale in the third quarter of 2012.
  o$303 million net loss, including impairment charges, primarily resulting
    from the planned shutdown of our Kewaunee nuclear merchant power station.
  o$53 million of restoration costs associated with severe storms affecting
    our Dominion Virginia Power and Dominion North Carolina Power service
    territories.
  o$22 million net loss from discontinued operations of two merchant power
    stations (State Line and Salem Harbor) which were sold in 2012.
  o$5 million net benefit related to other items.

(millions, except per     1Q12    2Q12     3Q12     4Q12      YTD 2012  ^2
share amounts)
Operating earnings       $486     $337     $526     $400      $1,749
Items excluded from
operating earnings
(after-tax):
    Fossil fuel-fired
    merchant power                          (45)     (1,029)   (1,074)
    stations
    Kewaunee power        2        (18)     (281)    (6)       (303)
    station
    Severe storms                  (45)     3        (11)      (53)
    Discontinued
    operations - State    1        (18)     (5)                (22)
    Line & Salem Harbor
    Other items           5        2        11       (13)      5
    Total items excluded
    from operating        8        (79)     (317)    (1,059)   (1,447)
    earnings (after-tax)
    ^1
Reported net income       $494     $258     $209     ($659)    $302
Common shares outstanding 571.9    573.1    574.7    575.0     573.9
(average, diluted)
Operating earnings per    $0.85    $0.59    $0.92    $0.69     $3.05
share
Items excluded from
operating earnings        0.01     (0.14)   (0.56)   (1.84)    (2.52)
(after-tax)
Reported earnings per     $0.86    $0.45    $0.36    ($1.15)   $0.53
share
^1) Pre-tax amounts for items excluded from operating earnings are reflected
    in the following table:
    Items excluded from   1Q12    2Q12     3Q12     4Q12      YTD 2012
    operating earnings:
    Fossil fuel-fired
    merchant power                          (34)     (1,670)   (1,704)
    stations
    Kewaunee power        3        (26)     (435)    (9)       (467)
    station
    Severe storms                  (74)     5        (18)      (87)
    Discontinued
    operations - State    2        (32)     (19)               (49)
    Line & Salem Harbor
    Other items           8        3        3        10        24
    Total items excluded
    from operating        $13      ($129)   ($480)   ($1,687)  ($2,283)
    earnings
^2) YTD 2012 EPS may not equal sum of quarters due to share count differences.
^3) Reflects amounts as originally reported prior to recast of results for
    Brayton Point and Kincaid generating stations as discontinued operations.



Schedule 4 - Reconciliation of 2013 Earnings to 2012
Preliminary, unaudited                    Three Months Ended
(millions, except EPS)                    March 31,
                                          2013 vs. 2012^1
                                          Increase / (Decrease)
Reconciling Items                         Amount           EPS
Dominion Virginia Power
     Regulated electric sales:
     Weather                              $15              $0.03
     Other                                (2)              0.00
     FERC Transmission equity return      6                0.01
     Retail energy marketing operations   (33)             (0.07)
     Storm damage and service restoration (8)              (0.01)
     Other                                (2)              0.00
     Change in contribution to operating  ($24)            ($0.04)
     earnings
Dominion Energy^
     Gas Distribution weather             $6               $0.01
     Gas Transmission margin              22               0.04
     Producer Services margin             (6)              (0.01)
     Blue Racer Midstream JV              14               0.02
     Other                                (6)              (0.01)
     Change in contribution to operating  $30              $0.05
     earnings
Dominion Generation
     Regulated electric sales:
     Weather                              $30              $0.05
     Other                                (4)              (0.01)
     Merchant generation margin           (19)             (0.03)
     Brayton Point, Kincaid and Elwood    11               0.02
     2012 earnings
     Rate adjustment clause equity return 11               0.02
     Other                                (24)             (0.04)
     Share dilution                       0                (0.01)
     Change in contribution to operating  $5               $0.00
     earnings
Corporate and Other
     Change in contribution to operating  ($21)            ($0.03)
     earnings
Change in consolidated operating earnings ($10)            ($0.02)
Change in items excluded from operating   $11              $0.02
earnings^2
Change in reported earnings (GAAP)        $1               $0.00
^1)  Reflects 2012 amounts prior to recast of operating results of Brayton
     Point and Kincaid generating stations as discontinued operations.
     Refer to Schedules 2 and 3 for details of items excluded from operating
^2)  earnings, or find "GAAP Reconciliation" on Dominion's website at
     www.dom.com/investors.



SOURCE Dominion

Website: http://www.dom.com
Contact: Media: Ryan Frazier (804) 819-2521, C.Ryan.Frazier@dom.com, Analysts:
Nathan Frost (804) 819-2187, Nathan.J.Frost@dom.com
 
Press spacebar to pause and continue. Press esc to stop.