Fourth-quarter 2022 GAAP net loss of $0.07 per share; operating earnings of $1.06 per share

Full year 2022 GAAP net income of $1.09 per share; operating earnings of $4.11 per share

December 31,

December 31,

2022

2021

2022

2021

Operating Revenue

Operating Expenses

Purchased electric capacity

Purchased gas

Other operations and maintenance¹

Depreciation, depletion and amortization

Other taxes

  Total operating expenses

Income (loss) from operations

Other income (expense)²

Interest and related charges

Income tax expense (benefit)

Net Income (loss) including noncontrolling interests

Noncontrolling interests

Net Income (loss) attributable to Dominion Energy

Average shares outstanding, diluted

Includes impairment of assets and other charges (benefits) and losses (gains) on sales of assets.

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.

REPORTED EARNINGS¹

Pre-tax loss (income)²

Income tax²

Adjustments to reported earnings

OPERATING EARNINGS

By segment:

Dominion Energy Virginia

Gas Distribution

Dominion Energy South Carolina

Contracted Assets

Corporate and Other

Earnings Per Share (EPS):³

REPORTED EARNINGS ¹

Adjustments to reported earnings (after tax)

OPERATING EARNINGS

By segment:

Dominion Energy Virginia

Gas Distribution

Dominion Energy South Carolina

Contracted Assets

Corporate and Other

Common Shares Outstanding (average, diluted)

REPORTED EARNINGS¹

Pre-tax loss (income)²

Income tax²

Adjustments to reported earnings

OPERATING EARNINGS

By segment:

Dominion Energy Virginia

Gas Distribution

Dominion Energy South Carolina

Contracted Assets

Corporate and Other

Earnings Per Share (EPS):³

REPORTED EARNINGS¹

Adjustments to reported earnings (after tax)

OPERATING EARNINGS

By segment:

Dominion Energy Virginia

Gas Distribution

Dominion Energy South Carolina

Contracted Assets

Corporate and Other

Common Shares Outstanding (average, diluted)

Determined in accordance with Generally Accepted Accounting Principles (GAAP).

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.

$51 million net market loss associated with $559 million from nuclear decommissioning trusts offset by $508 million in economic hedging activities.

$1.5 billion charge associated with the impairment of certain nonregulated solar generation facilities.

$830 million of regulated asset retirements and other charges, including $404M of charges for certain Virginia Power fuel and Regional Greenhouse Gas Initiative (RGGI) compliance costs deemed recovered through base rates, $243 million associated with the settlement of Virginia Power’s 2021 triennial review and $167 million for dismantling costs associated with the early retirement of certain Virginia Power fossil-fuel generation facilities.

$649 million loss associated with the sale of Kewaunee nuclear power station.

$125 million of storm damage and restoration costs primarily associated with storms in Virginia Power’s service territory.

 Reported earnings

 Adjustments to reported earnings ¹:

 Pre-tax loss (income)

 Income tax

 Operating earnings

 Common shares outstanding (average, diluted)

 Reported earnings per share ²

 Adjustments to reported earnings per share ²

 Operating earnings per share ²

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

 Pre-tax loss (income):

 Net loss (gain) on NDT funds

 Mark-to-market impact of economic hedging activities

 Discontinued operations - Gas Transmission & Storage segment

 Nonregulated asset impairments and other charges*

 Regulated asset retirements and other charges

 Sale of Kewaunee

 Storm damage and restoration costs

 Sale of Hope Gas, Inc.

 Income tax expense (benefit):    

 Tax effect of above adjustments to reported earnings **

 Deferred taxes associated with Hope Gas, Inc. divestiture⁴

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.

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.

YTD EPS may not equal sum of quarters due to share count difference.

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.

$308 million net market benefit associated with $568 million from the nuclear decommissioning trusts offset by $260 million in economic hedging activities.

$829 million of net income from discontinued operations, including $685 million associated with the sale of Questar Pipelines.

$564 million of regulated asset retirements and other charges, including $266 million associated with the settlement of the South Carolina electric rate case, primarily for the write-off of regulatory assets for debt repurchased in 2019, $186 million associated with the settlement of Virginia Power’s 2021 triennial review and $77 million for forgiveness of Virginia customer accounts in arrears pursuant to Virginia’s 2021 budget process.

$235 million of net charges associated with the sales of non-wholly-owned nonregulated solar facilities.

$99 million of net merger and integration-related costs associated with the SCANA Combination, primarily for litigation charges.

$77 million of net charges associated with workplace realignment, primarily related to a corporate office lease termination.

$68 million of storm damage and restoration costs associated with ice storms in Virginia Power’s service territory.

 Reported earnings

 Adjustments to reported earnings¹:

Pre-tax loss (income)

Income tax

 Operating earnings

 Common shares outstanding (average, diluted)

 Reported earnings per share²

 Adjustments to reported earnings per share²

 Operating earnings per share²

 Pre-tax loss (income):

Net (gain) loss on NDT funds

Mark-to-market impact of economic hedging activities

Discontinued operations - Gas Transmission & Storage segment

Regulated asset retirements and other charges

Sales of non-wholly-owned nonregulated solar facilities

Merger litigation and integration charges

Workplace realignment

Storm damage and restoration costs

Kewaunee decommissioning revision

Other

 Income tax expense (benefit):

Tax effect of above adjustments to reported earnings*

Other

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.

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.

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

Reconciling Items

Amount

EPS

Amount

EPS

Change in Pre-tax loss (income) ¹

Change in Income tax ¹

Weather

Customer usage and other factors

Customer-elected rate impacts

Base rate case impacts

Rider equity return

Renewable energy investment tax credits

Storm damage and service restoration

Interest expense, net

Other

Share dilution

Change in contribution to operating earnings

Gas Distribution

Weather

Customer usage and other factors

Base rate case impacts

Rider equity return

Interest expense, net

Other

Share dilution

Change in contribution to operating earnings

Weather

Customer usage and other factors

Customer-elected rate impacts

Base & RSA rate case impacts

Interest expense, net

Other

Share dilution

Change in contribution to operating earnings

Contracted Assets

Margin

Sale of non-wholly-owned nonregulated solar facilities

Planned outage costs

Renewable energy investment tax credits

Interest expense, net

Other

Share dilution

Change in contribution to operating earnings

Other

Change in contribution to operating earnings

 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.