|
May 2, 2007
Dominion Announces First Quarter 2007 Earnings
- Conference call scheduled for 10 a.m. EDT
today
RICHMOND, Va. – Dominion (NYSE: D) announced today unaudited
net income determined in accordance with Generally Accepted Accounting Principles
(GAAP) for the three months ended March 31, 2007 of $453 million ($1.29 per
share) compared to net income of $534 million ($1.53 per share) for the same
period last year.
Operating earnings for the three months ended March 31, 2007
amounted to $525 million ($1.50 per share) compared to operating earnings of
$573 million ($1.64 per share) for the three months ended March 31, 2006. Operating
earnings are defined as GAAP earnings adjusted for certain items.
Dominion uses operating earnings as the primary performance
measurement of its earnings outlook and results for public communications with
analysts and investors. Dominion also uses operating earnings internally for
budgeting, reporting to the board of directors and for the company’s annual
incentive plan. Dominion management believes operating earnings provide a more
meaningful representation of the company’s fundamental earnings power.
Business segment results and detailed descriptions of items
included in 2007 and 2006 GAAP 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 again reflect the strength
of the core businesses that will remain after we successfully reposition the
company. Adjusting for the impact of weather and unrecovered Virginia fuel expenses,
first-quarter 2007 total operating earnings per share for our delivery, energy
and generation segments were 9 percent higher than in the first quarter of 2006.
“As indicated by our announcement that we have reached
an agreement to sell our offshore gas and oil operations, we remain on target
to carry out our strategic initiatives. Robust economic growth in Virginia,
combined with planned expansions in merchant generation, natural gas pipelines
and storage, will position us to grow long-term operating earnings per share
4 to 6 percent on an average annual basis.”
First-quarter 2007 operating earnings compared to 2006
First-quarter 2007 operating earnings of $1.50 per share compare
to operating earnings of $1.64 per share in the first quarter of 2006. The decrease
is primarily attributable to the absence of a mark-to-market benefit from hedges
de-designated following Hurricanes Katrina and Rita, higher unrecovered Virginia
fuel expenses, lower contributions from the company’s producer services
business, and higher DD&A expenses in the company’s E&P business.
These negatives were partially offset by a return to comparatively normal weather
in the electric and gas utility service areas and higher contributions from
the company’s retail energy marketing, gas transmission and merchant generation
businesses.
Complete details of first-quarter 2007 operating earnings
compared to 2006 can be found on Schedules 4 and 5 of this release.
Conference call today
Dominion will host its first-quarter earnings conference call
at 10 a.m. EDT on Wednesday, May 2, at which time Dominion management will discuss
2007 financial results and provide an update on the company’s strategic
initiatives as well as 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) 323-9871. 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 Web cast of the conference call will be available on
the company’s investor information page at http://www.dom.com/investors/ir.jsp.
A replay of the conference call will be available beginning
about 1 p.m. EDT May 2 and lasting until 11 p.m. EDT May 9. Domestic callers
may access the recording by dialing (877) 919-4059. International
callers should dial (334) 323-7226. The PIN for the replay
is 63604226. Additionally, a replay of the Web cast will be
available on the company’s investor information page by the end of the
day May 2.
Dominion is one of the nation's largest producers of energy,
with a portfolio of about 26,300 megawatts of generation, about 6.5 trillion
cubic feet equivalent of proved natural gas reserves and 7,800 miles of natural
gas transmission pipeline. Dominion also owns and operates the nation's largest
underground natural gas storage system with about 960 billion cubic feet of
storage capacity and serves retail energy customers in eleven states. For more
information about Dominion, visit the company's Web site at http://www.dom.com/.
This release contains certain forward-looking statements,
including our projected future long-term operating earnings growth rate, that
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, such as fluctuations in energy-related commodity
prices, including changes in the cost of fuel for our regulated electric business,
the timing of the closing dates of acquisitions or divestitures (including our
divestiture of The Peoples Natural Gas Company and Hope Gas, Inc. and any divestiture
of our natural gas and oil assets), the amount of net proceeds received from
any divestitures, additional risk exposure associated with the termination of
business interruption and offshore property damage related to our exploration
and production operations and our inability to replace such insurance on commercially
reasonable terms, estimates of future market conditions, estimates of proved
and unproved reserves, the company’s ability to meet its natural gas and
oil production forecasts, the behavior of other market participants, and the
effects of hurricanes on our operations, gas and oil production and realized
prices. Other factors include, but are not limited to, weather conditions, governmental
regulations, economic conditions in the company'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, risks associated
with the realignment of our operating assets (including the potential dilutive
effect on earnings in the near term, costs associated with any sale of our exploration
and production business and the redeployment of proceeds from any sales), changes
to rating agency requirements and ratings, changing financial accounting standards,
trading counter-party credit risks, risks related to energy trading and marketing,
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 & Exchange Commission.
###
|
